Causes of decreasing of Gross profit margin

Question

What are the various causes of decreasing of Gross profit margin?

Answer 1

Causes of decreasing of Gross profit margin:
There are several reasons of decreasing gross profit margin of any company. Some of them, are illustrated below:

A) Raise the cost of raw material.
B) High labor turnover ratio.
C) Adverse worker’s compensation trouble.
D) Raise the rate of direct expenditures.
E) Reducing the sale prices due to tough competition.
F) Reducing the quantity of sale.