Which of the following does not increase the net profit margin ratio?

A) Increasing sales volume.
B) Increasing sales price.
C) Reducing inventory kept on hand.
D) Decreasing operating expenses.

Net Profit Margin Ratio

A profitability measure that calculates the percentage of net income derived from total revenues.

Operating Expenses

Operating expenses encompass the costs associated with running the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and payroll.