8.8 Reva has a jewellery business in a well-established shop. Her most recent statement of profit or loss show the following key figures:

20X5 20X4

£ £

Revenue 696,400 585,702 Cost of sales (416,447) (352,007)

Gross profit 279,953 233,695 A recent survey by the Jewellers’ Guild shows that average jewellery sales increased by 17.3% in 20X5 over the previous year. Also, it was found that the average gross profit margin in 20X5 amongst the survey respondents is 38.3%.

Which of the following statements is correct? An analysis of Reva’s figures shows:

a) a higher than average increase in revenue, and a higher than average gross profit margin.

b) a lower than average increase in revenue and a lower than average gross profit margin.

c) a higher than average increase in revenue, and a lower than average gross profit margin.

d) a lower than average increase in revenue, and a higher than average gross profit margin.