This year your company has purchased less expensive merchandise inventory but has not changed its selling prices.

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This year your company has purchased less expensive merchandise inventory but has not changed its selling prices. What effect will this change have on the company’s gross profit percentage this year, in comparison to last year?

a. The ratio will not change.
b. The ratio will increase.
c. The ratio will decrease.
d. Cannot determine.

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Fundamentals Of Financial Accounting

ISBN: 9781265440169

7th Edition

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

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Question Posted: Nov 01, 2021 02:12 AM

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This year your company has purchased less expensive merchandise inventory but has not changed its selling prices.

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Gross profit percentage is calculated using the following formula Gr...View the full answer

Fundamentals Of Financial Accounting

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