Because of his business's recent success, Sam has decided to expand his Sam's Swimming Pool Cleaning to include another branch. This will add expenses for another office and payroll for five more employees, but Sam's customer base will stay the same, at least for a while. Until Sam's new branch starts bringing in new customers, how will this change affect Sam's net profit margin?
a.
An added expense of a new branch has nothing to do with Sam's net profit margin.
b.
Since the new branch is adding expenses, Sam's net profit margin will go down.
c.
Since the new branch is adding expenses, Sam's net profit margin will go up.
d.
Since the expense the new branch is adding is negligible, Sam should see no change in his net profit margin.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Because of his business's recent success, Sam has decided to expand his Sam's Swimming Pool Cleaning to include another branch. This will ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
car wash services 200 customers in an hour on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour. An appropriate measure of productivity is A. 80%. B. 0.425 $/car. C.
Answers (1)
Management of a company threatens to close a manufacturing plant in the company whose employees are resisting an across-the-board pay cut. But this threat is actually untrue.
Answers (1)
define Goodwill ... should it be considered as an asset and State the reason why it is controversial in a business today
Answers (1)
If the public debt of a country in 2009 was 12,752,000,000,000 and the budget for 2010 was in deficit by 201,645,000,000, what was the public debt in 2010?
Answers (1)
Lawrence Company applies manufacturing overhead to jobs based on machine hours used. Overhead costs are estimated to be $300,000. Estimated machine hours are 125,000 hours, and estimated direct labor hours are 50,000 hours.
Answers (1)
New Questions in Business
arter Company sells merchandise on account for $4,000 to Hannah Company with credit terms of 2/10, n/30. Hannah Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period.
Answers (1)
Which appraisal method would be most useful in appraising an unusual building which has a very limited and specific use? a. price approach b. cost approach c. sales comparison approach d. income approach?
Answers (1)
What type of investment pays you a dividend?
Answers (1)
A product that effectively increases consumers' incomes when its price decreases.
Answers (1)
The pita pit borrowed $192,000 on november 1, 2018, and signed a six-month note bearing interest at 12%. principal and interest are payable in full at maturity on may 1, 2019.
Answers (1)