Part 1:

What types of business are more likely to have high profit margins? What types of business are more likely to have lower profit margins?

50-150 words

Part 2:

Smith Company has had gross profit percentages of 20 - 22% for the past 5 years. The current gross profit percentage is 14%.

What are some possible causes of this change in gross profit percentage?

What should the management of Smith Company do?

How can a company improve its gross profit percentage?

50-150 words

This is not a paper just for discussion. Simple answers will suffice, just dont have a lot of time right now. Thank you for your efforts.