O-LevelAccountingAnalysis and interpretation7707/12 · Oct/Nov 2022 · Q321 Mark

A trader provided the following information. year 1 year 2 gross profit $40 000 $75000 gross margin 35% 35% profit margin 11% 22% What would explain these changes?

Aan increase in selling price and a decrease in sales quantity

Ban increase in selling price and an increase in expenses

Can increase in sales quantity and a decrease in selling price

Dan increase in sales quantity and a decrease in expenses

✓ Correct answer

D: an increase in sales quantity and a decrease in expenses

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2022 Paper 1 Variant 2, question 32.

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