Q1:An analysis of the 2018 and 2019 profitability of Coronation Ltd showed that its gross profit margin increased, but operating profit margin decreased. Which of the following situations could explain the changes in the profitability ratios?

a. lower b. higher c. unable to be calculated d.unaffected by the transaction

Q2:

Which of the following independent statements are the possible explanations for higher current operating profit margin ratio than in the previous year?

i) Using expensive material in the production of product X

ii) Hiring a local, instead of internationally acclaimed, marketing agent

iii) Relocating the factory in a country with cheaper manpower

iv) Lowering selling price of product X