Extracts from the Profit and Loss Accounts for two years for a business are given in this
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Extracts from the Profit and Loss Accounts for two years for a business are given in this table:
What might explain the change in the gross profit margin in year 2?
A. An increase in sales
B. An increase in the sales price
C. A reduction in stock
D. Suppliers offering higher cash discounts
Transcribed Image Text:
Sales Gross profit Year 1 $ 100 000 30 000 Year 2 $ 200 000 70 000
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The change in the gross profit margin can be explained by comparing the gross profit to the sales fo...View the full answer
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