Let's say that we are nearing the end of the fourth quarter. In order to earn their
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Question:
Let's say that we are nearing the end of the fourth quarter. In order to earn their bonuses for the year, management needs to report a gross profit margin (remember that profit margin is net sales minus cost of goods sold; the profit margin is then the gross profit divided by net sales) of at least 38%. Right now, it looks like gross profit will come in right at 37%. What decision could management potentially make that could boost the gross profit to the 38% level? Would it be ethical?
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