Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

A trader gave the information below: year 1 versus year 2 gross profit: 40 000 / 75 000 gross margin: 35% / 35% profit margin: 11% / 22% What might account for these changes?

  • Aan increase in selling price and a decrease in sales quantity
  • Ban increase in selling price and an increase in expenses
  • Can increase in sales quantity and a decrease in selling price
  • Dan increase in sales quantity and a decrease in expenses

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