A firm has calculated the following accounting ratios for the year ended 30 June. 

What could explain the changes in the percentages? 

A. A fall in interest payments was equal to an increase in administration costs. 

B. An increase in raw-material costs was covered by an increase in selling price. 

C. An increase in the advertising budget has allowed the firm to increase the selling price. 

D. An increase in the advertising budget has led to a rise in sales volume.

Transcribed Image Text:

Year ended 30 June 2013 30 June 2014 Gross profit on sales 30% 33% Profit on sales 15% 14%