Answer to Question #324312 in Economics for Bea

Question

If IBM would like to improve its gross profit margin, which one of the following strategies would be the most appropriate? IBM would have to _______________ .

Select one:

a.

decrease its marketing efforts in order to decrease sales while increasing the cost of products sold

b.

reduce equity by buying back shares and cancelling the shares

c.

improve its marketing efforts in order to increase sales while reducing the cost of products sold

d.

increase sales by relaxing the credit standards while improving productivity by means of performance-management systems

Answer 1

c.

improve its marketing efforts in order to increase sales while reducing the cost of products sold