Which of the following would affect the gross profit rate? (Assume sales remains constant.)

(a) An increase in advertising expense.

(b) A decrease in depreciation expense.

(c) An increase in cost of goods sold.

(d) A decrease in insurance expense. The gross profit rate is equal to:

(a) net income divided by sales.

(b) cost of goods sold divided by sales.

(c) net sales minus cost of goods sold, divided by net sales.

(d) sales minus cost of goods sold, divided by cost of goods sold. Which factor would not affect the gross profit rate?

(a) An increase in the cost of heating the store.

(b) An increase in the sale of luxury items.

(c) An increase in the use of "discount" pricing" to sell merchandise.

(d) An increase in the price of inventory items