Brul Ltees statement of comprehensive income shows the following: Based on these figures, which one of the

Brulé Ltee’s statement of comprehensive income shows the following:

Based on these figures, which one of the following statements is true?

a. Sales, cost of sales, and selling and administration expenses have all increased, therefore operating profit, gross margin, and operating margin have all increased.

b. Although the operating profit has decreased, the operating margin has increased as a result of sales growth and an increase in gross profit.

c. The operating profit has decreased due to lower gross margins and higher expenses, despite sales growth.

d. 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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2012 2011 Sales $1,250,000 $1,175,000 Cost of sales 787,000 715,000 Selling & admin. expenses 324,000 323,000