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ThedatabelowisthatofOsborneLtd,asmallUKmanufacturingorganisation ThisyearActual LastYearActual ThisyearBudget Sales 187,500 185,000 192,500 Costofsales (91,875) (88,800) (96,250) Grossprofit 95,625 96,200 96,250 Grossprofitmargin: 51.00% 52.00% 50.00% With reference to the data

ThedatabelowisthatofOsborneLtd,asmallUKmanufacturingorganisation

ThisyearActual

LastYearActual

ThisyearBudget

Sales

187,500

185,000

192,500

Costofsales

(91,875)

(88,800)

(96,250)

Grossprofit

95,625

96,200

96,250

Grossprofitmargin:

51.00%

52.00%

50.00%

With reference to the data provided, which ONE of the following statements is TRUE?

  1. Theactualsalesvalueforthisyearishigherthanthatexpectedforthisyearbut less than the actual sales value for last year
  2. The actual gross profitmarginfor this year is higher than thatexpectedfor this year but less than the actual gross profit margin achieved last year
  3. The budget for this year indicated a small increase in profits compared to last year's actual results and this target was achieved
  4. Thevalue forcostofsales(budgetedand actual)is alwaysgreaterthan(or equal to) 50% for the sales value

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