Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

Paul’s gross margin rose from $16.5\%$ in year $1$ to $17.5\%$ in year $2$. What could account for the rise in the gross margin?

  • Aincreasing the quantity of goods sold
  • Bincreasing the selling price of the goods sold
  • Coffering trade discounts to customers buying in bulk
  • Dselling goods at a reduced price

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