Income Statement CFM Majestic Inc Referring to the CFM Majestic Financial Statements, Pick the Most

Income Statement CFM Majestic Inc.
Years 1 & 2 ($000,000s)
$$\begin{array} { | c | c | c | } \hline & \underline { \text { Year 1 } } & \underline { \text { Year 2 } } \\\hline \text { Sales } & 381.9 & 416.3 \\\hline \text { COGS } & 244.9 & 278.9 \\\hline \text { SG\&A } & 59.7 & 63.8 \\\hline \text { Depreciation } & 13.8 & 15.4 \\\hline \text { R \& D } & \underline { 5.3 } & \underline { 4.3 } \\\hline \text { EBIT } & 58.2 & 53.9 \\\hline \text { Interest Expense } & \underline { 7.3 } & \underline { 7.9 } \\\hline \text { Earnings before Income Tax } & 50.9 & 46.0 \\\hline \text { Income Taxes } & \underline { 17.3 } & \underline { 14.8 } \\\hline \text { Net Income } & \underline { 33.6 } & \underline { 31.2 } \\\hline\end{array}$$ Referring to the CFM Majestic financial statements, pick the most informative explanation for why ROA fell.

A) ROA fell because both gross margin fell and Selling, General & Admin expenses as a percentage of sales fell.
B) ROA fell because Total Asset Turnover fell.
C) ROA fell because the Equity Multiplier fell and because Cost of Goods Sold over Sales rose.
D) ROA fell because Net Income grew more slowly than Total Assets.
E) ROA fell mainly because gross margin fell.