Holding All Other Variables Constant, an Increase in COGS Will

question 32

Multiple Choice

Holding all other variables constant, an increase in COGS will lead to:

• A)a decreased cost ratio.
• B)a higher gross margin.
• C)lower net income.
• D)paying more in taxes.

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Definitions:

Target Markets

Target markets are specific groups of potential customers that a business aims to attract and sell to, identified by characteristics like demographics, interests, and behaviors.

Promotion Strategy

Tactics and methods used by a business to promote and bring greater awareness to its products or services.

Market Testing

The process of evaluating consumer response to a product or service in a specific market before a full-scale launch.

Aggressive Salespeople

Sales professionals who use assertive and often pushy techniques to close deals or secure clients.