A rising gross profit rate most strongly suggests:
A)An increase in physical sales volume.
B)Strong consumer demand for the company's products.
C)Intense competition.
D)Increased short-term solvency.

Question

Quizplus · Accepted Answer

A rising gross profit rate suggests that a company is able to sell its products at a higher margin, which is often a result of strong consumer demand for its products. This does not directly indicate changes in sales volume, competition intensity, or short-term solvency.

A Rising Gross Profit Rate Most Strongly Suggests