What has the greatest impact on operating
profits?

Key Takeaways. The most direct factor that affects profit margins is your net or gross profit.

Efficiency
A company's efficiency is crucial to its profit and loss statement because it affects both incoming revenue from sales and outgoing resources such as payroll and materials purchasing. An efficient company is able to produce plenty of product or serve plenty of customers in the time it has available to maximize its incoming revenue. It also makes the most of employee time and purchased inventory, minimizing expenditures. For example, a video production company that develops an efficient system for shooting footage can shoot a greater number of videos for its clients and save money on payroll by minimizing shooting or editing time.

Answer grew cotton, eastern factory workers,; made machines and textiles;