T Co's gross proﬁt percentage has been increasing in the three years from 20X1 through 20X3 from 36.5% to 39.8%. This change has most likely been caused by which of the following?
A) Higher product costs
B) Selling products with lower margins
C) Selling products for higher prices
D) Discounted prices

Question

Quizplus · Accepted Answer

An increase in gross profit percentage is typically caused by selling products for higher prices, as this directly increases the margin between the cost to produce the goods and the selling price, without necessarily increasing the costs.

T Co's Gross Proﬁt Percentage Has Been Increasing in the Three