You have been hired as an analyst for Anderson Corp., and your team is working on an assessment of the company. Your assistant has provided you with the following data for the company:

• 2016
  • Revenues were $455,000
  • Gross profit was $273,000
  • Net income was a positive $91,000
• 2015
  • Net income was a positive $74,000
  • Revenues were $411,000
• • The gross profit margin was unchanged percentage-wise from 2016

• Which of the following would you tell Anderson Corp.?

  Gross profit is causing income to grow slower than it should.

  Expenses have increased by a percent to revenue.

  Profitability has improved year to year.

  Profitability is flat.