LA Business Daily

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? thanks 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? if a cereal company adds a new line that is related to its previous line ( new cereal and food and grain-based products ) but outside their traditional line, what will happen to their net income and gross profit? thanks if a cereal company adds a new line that is related to its previous line ( new cereal and food and grain-based products ) but outside their traditional line, what will happen to their net income and gross profit? thanks

Public Comments

1. 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.