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Which of the following ratios will not increase when net income increases? A. Return on equity...

Which of the following ratios will not increase when net income increases?

A. Return on equity

B. Net profit margin.

C. Return on assets.

D. Gross profit percentage

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Answer #1

Gross profit percentage will not increase when net income increases.

Because net income is calculated after gross profit, therefore gross profit percentage will have no impact.

Option D is correct.

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