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Theo Company's Gross Profit Rate has decreased over the last 3 years while Profit Margin has increased. Based upon that trend, Theo Company: Note:

Theo Company's Gross Profit Rate has decreased over the last 3 years while Profit Margin has increased. Based upon that trend, Theo Company: Note: Gross Profit Rate is calculated as Gross Profit Dollars divided by Net Sales. Profit Margin is calculated as Net Income divided by Net Sales. A. experienced an improvement in overall solvency. B. experienced a decline in merchandise profit. C. experienced an improvement in merchandise profit. D. experienced a decline in overall profitability.

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