Analysis of gross profit.
During 2014, King's Drug Company experienced a significant increase in the rate of gross profit on sales, compared with the rate it has averaged in recent years. You are asked to determine the most likely reason for this improvement. Support your answer.The following data are from the records of the company:2014 sales (at an average price of $40 a unit) were $2,300,000.2014 purchases (at an average cost of $24 a unit) were $1,200,000.The company uses the LIFO inventory method and has used it since 1985.

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The Answer of Analysis of gross profit.
During 2014, King's Drug Company experienced a significant increase in the rate of gross profit on sales, compared with the rate it has averaged in recent years. You are asked to determine the most likely reason for this improvement. Support your answer.The following data are from the records of the company:2014 sales (at an average price of $40 a unit) were $2,300,000.2014 purchases (at an average cost of $24 a unit) were $1,200,000.The company uses the LIFO inventory method and has used it since 1985.

Analysis of Gross Profit