"Sound Sensations Company had cost of goods sold of $450,000 and net sales of $650,000 in 2015. In 2016, cost of goods sold are $400,000 and net sales are $850,000. The industry standard is 40%. Which of the following statements best expresses Sound Sensations assessment of their gross margin percentage?"

Question 1 options:

	Their gross margin percentage has improved but it is below the industry average.
	Their gross margin percentage has deteriorated and it is below the industry average.
	Their gross margin percentage has deteriorated but it still exceeds the industry average.
	Their gross margin percentage has improved and exceeds the industry average.