O-LevelAccountingAnalysis and interpretation7707/13 · Oct/Nov 2024 · Q331 Mark

Paul's gross margin increased from 16.5% in year 1 to 17.5% in year 2. What would explain the improvement in the gross margin?

Aincreasing the quantity of goods sold

Bincreasing the selling price of the goods sold

Coffering trade discounts to customers buying in bulk

Dselling goods at a reduced price

✓ Correct answer

B: increasing the selling price of the goods sold

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2024 Paper 1 Variant 3, question 33.

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