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Company (A) increase price of product (G) by 10€ , this increase has no affect on sales volume , as result Company (A) operating profit margin is:

A- increase as result of price increase B- remain unchanged C- decline as result of price increaee D- change but direction of change is not determined

Accounting Cost Accounting Financial Accounting CMA Costing
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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/31
Upvote (1) Views (13) Followers (6) Answers (6) Report Question
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HASEEBA MAMMU
by HASEEBA MAMMU , Cost Associate and Vat Consultant , Shabeerali and Associates

A-Eventhough the sales volume is constant the revenue is increased due to increase in selling price hence operating profit also increase

Rajeev kesavan
by Rajeev kesavan , Associate Manager , Iffco

A- Operating profit margin will increase as a result of price increase

Luis Cassio
by Luis Cassio , Head of Safety and Security and Match organization director , Vitoria Futebol Clube (professional soccer team)

A- increase as result of price increase

SHADY AHMED
by SHADY AHMED , Senior Accountant , Fujitsu

increased by 10 as per increase in price

     

tamer eissa mahmoud
by tamer eissa mahmoud , business and accounting teacher , rajac international schools

A increased as the price increased without any effect on sales

Deleted user
by Deleted user

c should be the answer as the price has increased. 

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