A small increase in the gross profit percentage could indicate:

Question

Quizplus · Accepted Answer

A small increase in the gross profit percentage means that the company is earning more profit on each sale, which would result in a significant rise in overall profit. A decrease in profit and lower inventory turnover would decrease the gross profit percentage, and a decrease in overhead expenses would increase net profit but may not necessarily impact gross profit percentage.

A Small Increase in the Gross Profit Percentage Could Indicate