Bill owns a company (Bill’s Gates) that manufactures fence panels. Bill’s Gates had a net profit margin last quarter of 18%. Which of the following actions will not help Bill increase his net profit margin this year, assuming he sells the same number of fence panels?

Net profit margin is net profit divided by revenue. Raising the price or lowering lumber and labor costs can increase profit per panel, assuming sales volume stays the same. A “buy one, get one free” deal gives away an extra panel for each paid panel, reducing revenue per panel sold and increasing costs, so it will not help increase the margin. The correct choice is C, offering the special.

AI-written and checked against the verified answer.