Respuesta :

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Answer:

There are major risks when a company attempts to increase the profit margin of a commodity, first if you buy from a cheaper vendor the quality of your commodity will drop affecting the number you sell on average, But if you raise the costs too much then there is the possibility people would be deterred by the cost.

If you increase the costs too much then there is the possibility people would be demoralized by the cost.

What a is the Margin of Commodity?

There are significant risks when a company endeavors to increase the profit margin of a commodity,

foremost, if you buy from a more affordable vendor the quality of your commodity will decline affecting the numeral you sell on average,

So, Therefore, if you raise the costs too much then there is the possibility people would be discouraged by the cost.

Find more information about Margin of Commodity here:

https://brainly.com/question/15190495

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