FT reports. Beyond Meat, the $7.8bn fake meat company which trades like a penny-stock, announced its first-quarter results on Tuesday evening (last week). A Chief Executive of Beyond Meat says: During this period [Quarter 1], Beyond Meat continued to own the top 4 best-selling SKUs (stock-keeping unit) in all plant- based meat and outpaced its closest competitor in terms of year-over-year sales growth by a factor of roughly 6x. Furthermore, during the 4-week period ended March 22, 2020, in which retailers saw stockpiling by consumers as stay-at- home orders proliferated, sales of Beyond Meat products were above 233% year-over-year with velocity growth of 195%, outperforming the plant-based meat category as a whole, which rose 93%. Under the threat of Covid19 clusters in meat processing plants in the USA, all else equal, what do you expect for the gross margin at the end of year for Beyond Meat compared to last year (assume the company has significant production fixed costs.)? Select one: O The gross margin does not change as the gross margin does not depend on sales. O The gross margin will increase as consumers substitute meat products O The gross margin will decrease as the cost of meat is increasing