Understand the problems that can arise in comparing businesses with each other.

Ronald's trading business operates from a shop in a large city centre. Extracts from Ronald’s most recent profit and loss accounts for 20X4 and 20X3 show the following key figures:
20X4 20X3 £ £
Sales 110 450 95 544 Cost of sales (72 058) (62 075)
Gross profit 38 392 32: 469 Ronald belongs to a trade association that has recently carried out a confidential survey of its members. The survey found that between 20X3 and 20X4 the average increases in sales and gross profitability of the membership were:
B increase in sales = 12.6%