Over a two-year period,Coca-Cola's gross profit percentage went from 70.4% to 69.7%.Which of the following was the cause of this change?
A)Reduced selling prices.
B)Rising product cost as a percentage of sales.
C)Increased competition from Pepsi.
D)All of the answers could have led to the change.

Question

Quizplus · Accepted Answer

A decrease in Coca-Cola's gross profit percentage could be due to reduced selling prices, rising product costs as a percentage of sales, or increased competition from Pepsi. All these factors can negatively impact the gross profit margin by either decreasing revenue or increasing costs relative to sales.

Over a Two-Year Period,Coca-Cola's Gross Profit Percentage Went from 70