7. Required information

The following income statements were drawn from GreyCo's annual report:

Year 1 Year 2 Sales revenue $ 1,000 $ 2,000 Cost of goods sold (600) (1,100) Net income $ 180 $ 100

At the end of Year 1 GreyCo developed a plan based on a new business strategy. Specifically, the Company planned to move its store to a more expensive location and then to raise its prices to cover the additional cost. Which of the following best describes the results of implementing the plan?

The strategy was successful because the company was successfully able to increase its prices. The strategy was successful because the company was able to lower its operating cost. The strategy was unsuccessful because the company was not able to raise its prices enough to cover the additional operating expenses. The strategy was unsuccessful because the company was unable to raise its prices.