Question: 35.13 An electrical store and a cake shop both have the same mark up on cost. However, the gross profit margin of the electrical store

35.13 An electrical store and a cake shop both have the same mark up on cost. However, the gross profit margin of the electrical store is significantly higher than that of the cake shop. Which of the following is a possible reason for this? A The cake shop has a higher turnover of inventory than the electrical store. B The electrical store takes advantage of trade-discounts for bulk buying. C The cake shop has a higher level of wastage of inventory than the electrical store. D The cake shop's revenue is increasing, while that of the electrical store is decreasing. (2 marks)

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