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Imagine you are a manager at company and that you are examining the common-size income statements for the company for the past five years. The
Imagine you are a manager at company and that you are examining the common-size income statements for the company for the past five years. The cost of goods as a percentage of sales has been increasing steadily. At the same time, EBIT as a percentage of sales has been decreasing. What might account for the trends in these ratios? What actions might you suggest your team to take to improve these ratios?
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