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Problems with the supply chain have been in the news lately. Let's assume (hypothetically) that these problems cause increases in shipping costs. Thinking about large
Problems with the supply chain have been in the news lately. Let's assume (hypothetically) that these problems cause increases in shipping costs. Thinking about large retailers, such as Target or Walmart - how would increased shipping costs affect them? 1) If Target and Walmart were unable to pass on the increased costs to customers, gross margin and profit margin would likely decline. The balance sheet would be unaffected by the shipping costs. 2) If Target and Walmart were unable to pass on the increased costs to customers, gross margin and profit margin would likely decline. The balance sheet would show less in retained earnings due to increased shipping costs. 3) If Target and Walmart were unable to pass on the increased costs to customers, revenue and cost of goods sold would be lower. The balance sheet would also show less in retained earnings. 4) If Target and Walmart were unable to pass on the increased costs to customers, cost of goods sold would be lower. The balance sheet would be unaffected by the shipping costs
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