Question 3 (2 points) An internal auditor performed trend analysis for the company's gross margin and profit margin and found the following results compared to the prior year: Gross margin % increased Profit margin % decreased Assuming different managers within the company provided the following explanations, which of them is the least reasonable in explaining these trends? Sales volume increased and so did research and development expenses. o Sales price increased as did executive salaries. The cost of direct labor increased while research and development expenses decreased The size of the plant was reduced, cutting fixed overhead costs, which also reduced administrative expenses