A small increase in the gross profit percentage could indicate:

Question

Quizplus · Accepted Answer

A small increase in the gross profit percentage could indicate a potential rise in net income, assuming that operating expenses and other factors remain constant. This is because the gross profit percentage reflects the efficiency with which a company uses its direct costs to generate revenue. An increase suggests that the company is generating more profit from its sales relative to its cost of goods sold, which could lead to a higher net income if all other factors remain unchanged.

A Small Increase in the Gross Profit Percentage Could Indicate