Aggregate Profit Margin Variables | CFA® Level 1 Test Prep

The two most important variables affecting aggregate profit margin are

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The two most important variables affecting aggregate profit margin are

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A. B. C. D. E.

E

Analysis of annual data for the period of 1977 to 1994 has shown that there is a significant positive relationship between the capacity utilization rate and operating profit, and a significant negative relationship between unit labor costs and operating profit. The rate of inflation and foreign competition variables were not found to be significant in a multiple regression on operating profit.