Assume company XYZ (above) has been using FIFO accounting. For some reason, their sales increase drastically this year. Assuming the price that they sell the widgets does not change, and that they are unable to produce more widgets (i.e. they sell many more widgets than they produced this year), what will happen to the Gross Profit Margin percentage?

Answer rating: 100% (QA)

If Company XYZ has been using the FIFO FirstIn FirstOut method for inventory accounting and their sa... View the full answer