Question: please answer both quickly Sales have increased since the previous year and the gross-profit-to-sales ration has increased but the operating-profit-to-sales ratio has fallen. This is
Sales have increased since the previous year and the gross-profit-to-sales ration has increased but the operating-profit-to-sales ratio has fallen. This is most likely because Select one: O a Expenses have increased O b. Taxes are higher Selling price is lower d. Cost of sales has not been effectively controlled Risk is highest when Select one: a. Degree of operating leverage is lower and interest cover ration is lower b. Degree of operating leverage is higher and interest cover ration is higher O Degree of operating leverage is lower and Interest cover ration is higher Od Degree of operating leverage is higher and interest cover ration is lower
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