Located in F-Land, CBB operates a chain of city centre hairdressing salons, with limited scope for expansion, due to the proximity of neighbouring properties. CBB is looking to improve returns to shareholders and is considering installing a mezzanine floor in many of its properties to take advantage of the high-ceilings, a feature of a significant part of its property estate. The upgrade to salon facilities would be funded by bank finance. CBB does not employ hairdressing staff directly but operates a 'rent-a-seat' model. It does employ a small number of salon support staff, paid in accordance with mandatory minimum wage rates. CBB has a waiting list of hairdressers interested in operating out of CBB's city centre location. You are CBB's finance manager and have been asked to update the senior leadership team on the impact the 'mezzanine' initiative would have on CBB's financial performance and position. Which pair of ratios would be favourably impacted in the short-term by CBB's decision to install mezzanine floors across the salons to reduce its current internal constraint on seat capacity? Solution A.Interest cover and operating expenses. B.Gearing and Interest cover. C.Return on equity (ROE) and Gross margin. D.Gearing and Non-current asset turnover