Purrfect Pets announces that its gross profit rose 5% and its net income fell.Which of the following statements is true?
A) This is not possible given that net income is determined by gross profit.
B) This must mean that selling,general,and administrative expenses rose more than 5%.
C) This must mean that sales revenue rose more than expenses.
D) This must mean that cost of goods sold fell.
Correct Answer:
Verified
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