8.8 Reva has a jewellery business in a well-established shop. Her most recent income statements show the following key figures:

2012 2011

£ £

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 2012 over the previous year. Also, it was found that the average gross profit margin in 2012 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.