The gross profit percentage decreased from 36.5% in Year 1 to 24.8% in Year 2.What is the trend in this change?
A) This decrease represents an upward, or favourable, trend.
B) This decrease represents a downward, or negative, trend.
C) The answer depends upon whether net sales increased or decreased during the period.
D) The trend cannot be determined unless the dollar amount of the change is also known.
Correct Answer:
Verified
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