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