Maya recorded annual revenue of $100 000. During year 1, her gross margin stood at 45% and her profit margin stood at 5%. During year 2, her gross margin fell to 40% and her profit margin fell to 3%. What change occurred to Maya’s cost of sales and expenses in year 2?
- Acost of sales decreased; expenses decreased
- Bcost of sales decreased; expenses increased
- Ccost of sales increased; expenses decreased
- Dcost of sales increased; expenses increased