If a Company Increases the Selling Price of the Product

question 177

Multiple Choice

If a company increases the selling price of the product it sells and all other data on the financial statements remains the same,which of the following ratios will be unaffected?

• A)Fixed asset turnover
• B)Net profit margin
• C)Inventory turnover
• D)Earnings per share

---

Definitions:

Total Output

The total quantity of goods and services produced by an economy, sector, or individual producer over a specified period.

Coincidence-of-Wants Problem

Refers to the difficulty in barter transactions where each party needs to have what the other wants and be willing to trade for it simultaneously.

Trade by Barter

The exchange of goods or services between parties without the use of money as a medium of exchange.

Capital Goods

Long-term assets such as buildings, machinery, and equipment used by businesses to produce goods and services.