8. If gross profit margin decreased from the prior year, this could be due to: cost increases and no selling price increase, a. b. c. d. e. downward pressure on sale prices such as discounts due to competition Sales mix has changed to lower margin products Inventory shrinkage: theft All of the above are possible reasons that need to be investigated to explain the change. 9. In the formula for return on investment, interest expense is multiplied by (1 - tax rate), then added to net income. Why is this adjustment made? a. Interest is not tax deductible b. Debt is excluded from the denominator to represent common shareholders c. Net income in the formula is after tax and must be adjusted to represent all providers of capital d. Dividends are not deductible for tax purposes e. None of the answers are correct