In $2021,2022,$ and $2023,$ Callow Industries reported the following in its income statements. Based on this information, how did Callow$$s profit margins change over time? Why?

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Profit margins decreased from $2021$ to $2022$ because operating expenses decreased, and profit margins decreased from $2022$ to $2023$ because the gross profit rate increased.

Profit margins decreased from $2021$ to $2022$ because operating expenses decreased, and profit margins increased from $2022$ to $2023$ because the gross profit rate increased.

Profit margins increased from $2021$ to $2022$ because operating expenses decreased, and profit margins increased from $2022$ to $2023$ because the gross profit rate increased.

Profit margins increased from $2021$ to $2022$ because operating expenses de