Answered: Cost of goods sold has increased

Business

Accounting

Cost of goods sold has increased

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The gross profit margin is unchanged, but the net profit margin declined over the same period. What could be the reason for this change?

Cost of goods sold has increased

Revenue has increased relative to expenses

The tax rate on income has increased

Dividends were decreased

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