Disanity Corporation's statement of comprehensive income shows the following: Based on these figures, which of the following
Question:
Disanity Corporation's statement of comprehensive income shows the following:
Based on these figures, which of the following statements is true?
a. Sales, cost of goods sold, 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.
Step by Step Answer:
Accounting For Managers Interpreting Accounting Information For Decision Making
ISBN: 9781118037966
1st Canadian Edition
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann