1. What is the operating profit margin for the company over the years 2020 and 2019 respectively?...

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Question:

1. What is the operating profit margin for the company over the years 2020 and 2019 respectively? *

A) 2.6%; 4.5%

B) 1.3%; 2.5%

C) 1.8%; 3.4%

D) 27.4%; 31.1%

E) None of the above

2. What can you say about the net income for the year 2020? *

A) Net Income has increased as a result of the increased operating profit.

B) Net Income has decreased as a result of the decreased operating profit which resulted from the increase in COGS..

C) Net income is $2,061 representing 1.3% of sales. The company has a overall decrease in profit compared to the year 2019.

D) Both (B) & (C)

E) None of the above

3. What is the gross profit margin for the company over the years 2020 and 2019 respectively? *

A) 2.6%; 4.5%

B) 1.3%; 2.5%

C) 1.8%; 3.4%

D) 27.4%; 31.1%

E) None of the above

4. According to your answer in the previous question (3), the gross profit margin has decreased from 2019 to 2020. This decline in gross profit could be due to: *

A) A decrease in prices caused by competition, deflation, or slow-moving goods that have been discounted.

B) An increase in the cost of goods and the firm has been unable to pass along the increases to customers. This is happened while the selling prices have remained the same.

C) All of the above.

D) None of the above