An increase in a company's gross profit margin indicates that the company
A) has increased sales volume.
B) has increased selling prices.
C) has decreased its cost of goods sold.
D) potentially any of the above could have occurred.

Question

Quizplus · Accepted Answer

An increase in a company's gross profit margin can result from increased sales volume, increased selling prices, or decreased cost of goods sold. Each of these factors can lead to a higher margin by either increasing revenue or reducing costs.

An Increase in a Company's Gross Profit Margin Indicates That