XYZ Ltd's Income Statement shows the following:

Based on these figures, which of the following statements is true?
a. Sales, cost of sales and expenses have all increased, therefore profit, gross margin and operating margin have all increased.
b. The operating profit has increased due to sales growth, higher gross margins and similar expenses.
c. Although the operating profit has decreased, the operating margin has increased as a result of sales growth and an increase in gross profit.
d. The operating profit has decreased due to lower gross margins and higher expenses, despite sales growth.
e. Although the operating profit has increased, the operating margin has decreased as a result of a reduction in the gross margin and higher expenses, despite sales growth.

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2008 Sales 1,250,000 2007 1,175,000 Cost of sales 787,000 715,000 Selling and admin expenses 324,000 323,000