what causes revenue to decrease
A decline in sales due to falling prices can also cause a decline in gross profit margin. You might lower your prices due to competition or to entice more sales. But a decrease in the selling price that is not accompanied by a decline in the cost of goods sold causes a decline in gross profit.When revenues go down while cost of goods sold stays the same, you will see a decrease in gross profit margin.ou might lower your prices due to competition or to entice more sales. But a decrease in the selling price that is not accompanied by a decline in the cost of goods sold causes a decline in gross profit. When revenues go down while cost of goods sold stays the same, you will see a decrease in gross profit margin.