O-LevelAccountingAnalysis and interpretation7707/12 · May/June 2022 · Q321 Mark

Maya had annual revenue of $100000. In year 1, her gross margin was 45% and her profit margin was 5%. In year 2, her gross margin was 40% and her profit margin was 3%. What happened to Maya's cost of sales and expenses in year 2?

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Adecreased decreased

Bdecreased increased

Cincreased decreased

Dincreased increased

✓ Correct answer

C: increased decreased

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

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