Assume Tyler,Inc.had a gross profit ratio of 30%,25%,and 20% over the most recent three years.Which statement below is the best interpretation of the data?

Question

Quizplus · Accepted Answer

The gross profit ratio is declining over the three years, which suggests that the company is either decreasing its selling price per unit or experiencing an increase in inventory costs per unit, leading to a lower margin on sales. This does not necessarily indicate changes in the volume of inventory sold.