How net income and gross profit are likely to be affected after adding a new product line?

Posted: 22-10-2008 | Author: admin | Category: United States
get profit
ahmedjg106 asked:


hey guys
I have a question about net income and gross profit.
How gross income and net income are likely to be affected when a company add a new line beside their traditional line?
thanks
hey guys
I have a question about net income and gross profit.
How gross income and net income are likely to be affected when a company add a new line beside their traditional line? if a cereal company adds a new line that is related to its previous line ( new cereal and food and grain-based products ) but outside their traditional line, what will happen to their net income and gross profit?
thanks
if a cereal company adds a new line that is related to its previous line ( new cereal and food and grain-based products ) but outside their traditional line, what will happen to their net income and gross profit?
thanks

Category: United States by admin

One Response to “How net income and gross profit are likely to be affected after adding a new product line?”

  1. bostonianinmo, on October 24th, 2008 at 11:20 am Said:

    Not a tax question.

    But to answer your question, it could go either way. Merely adding a product line does not assure success of the line or an improvement of net profit. If Microsoft came out with a line of perfumes, it would probably fail miserably. Ditto if Nike tried to get in the router market.

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