Ariel Co.'s gross profit margin increased from 41.5% in 2020 to 44.3% in 2021.Possible reasons may include:
A)increased shipping costs
B)use of early payment discounts for merchandise purchases
C)cost of obsolete product passed on to the customer
D)reduced selling prices

Question

Quizplus · Accepted Answer

The use of early payment discounts for merchandise purchases would result in a lower cost of goods sold, which would increase the gross profit margin. The other options would likely decrease the gross profit margin.

Ariel Co'S Gross Profit Margin Increased from 41