T Co's gross profit percentage has been increasing in the three years from 2010 through 2012 from 36.5% to 39.8%.This change has most likely been caused by which of the following?

Question

Quizplus · Accepted Answer

If the gross profit percentage is increasing, it means that the company is making more profit on each product it sells. This can happen due to selling products for higher prices, which would increase the revenue earned but not necessarily increase the product costs or lower margins. Discounted prices, selling products with lower margins, and higher product costs would all decrease the gross profit percentage.

T Co's Gross Profit Percentage Has Been Increasing in the Three