accounting

Three years ago, Karen Suez and her brother-in-law Reece Jones opened Larkspur Company. For the first two years, business was good, but the following condensed income results for 2022 were disappointing. Karen believes the problem lies in the relatively low gross profit rate (gross profit divided by net sales) of 20%. Reece believes the problem is that operating expenses are too high. Karen thinks the eross profit rate can be improved by making two changes. She does not anticipate that these changes will have any Three years ago, Karen Suez and her brother-in-law Reece Jones opened Larkspur Company. For the first two years, business was good, but the following condensed income results for 2022 were disappointing. Karen believes the problem lies in the relatively low gross profit rate (gross profit divided by net sales) of 20%. Reece believes the problem is that operating expenses are too high. Karen thinks the eross profit rate can be improved by making two changes. She does not anticipate that these changes will have any