If a company achieves a small increase in its gross profit percentage from one year to the next,the company:
A) will have a higher net income.
B) must be obtaining products at a lower cost per unit.
C) must have increased its sales revenue.
D) might not have had a sales volume increase.

Question

Quizplus · Accepted Answer

A small increase in gross profit percentage could result from either higher sales prices or lower costs, not necessarily an increase in sales volume.

If a Company Achieves a Small Increase in Its Gross