How net income and gross profit are likely to be affected after adding a new product line?

hey guys

I have a question about net income and gross profit.

How gross income and net income are likely to be affected when a company add a new line beside their traditional line?

thanksHow net income and gross profit are likely to be affected after adding a new product line?
Not a tax question.



But to answer your question, it could go either way. Merely adding a product line does not assure success of the line or an improvement of net profit. If Microsoft came out with a line of perfumes, it would probably fail miserably. Ditto if Nike tried to get in the router market.