A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2014 · Q241 Mark
A company's sales revenue has increased by 40% in a period, but its gross profit has only increased by 30%. Which factors could explain this? 1 a decrease in the cost of sales 2 a decrease in selling price per unit 3 an increase in administration expenses 4 an increase in purchase price per unit
A1 and 2
B2 and 3
C2 and 4
D3 and 4
✓ Correct answer
C: 2 and 4
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