Respuesta :
Yes, Knoll should increase the price as it would lead to increased profit margin by generating more revenue.
Goods purchased on account for future use in the business, such as supplies, are called ?
Prepaid goods are those that have been purchased on account for future usage in the firm, such supplies which are used for future purposes to manage the resources of the firm and bring the best yields.
How can we interpret the profit margin?
The profitability of a company, product, or service is determined by its profit margin. Profit margin is expressed as a percentage as opposed to a monetary value. The greater the figure, the greater the profit the company realizes in relation to its expenses.
Profit - 15,000 ($50 - $20) - $300,000 = $150,000.
Demand fall's from 15,000 to 12,000 units each month if prices rise.
The profit will then be 12,000 x ($60 - $20) x $300,000, or $180,000.
More than making up for the drop in demand is the increase in price per unit.
To know more about firms profit margins here-
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