[killaking]

can anyone tell me why this is the answer for a decrease in GP% and why the opposite isnt the answer I just tried it and it doesn’t work. thanks guys.

Manufacturing cost decreased less than sales decreased during the year

Gross profit percentage is calculated as (net sales – cost of goods sold) / net sales. Based on the figures

provided in the financial statements, manufacturing cost (i.e., cost of goods sold) decreased less than

sales decreased. Since both the numerator and the denominator are affected, the effect on this ratio will

depend on the percentage change in the numerator vs. the percentage change in the denominator. In

this case, given the specific financial statement amounts provided, these changes resulted in a greater

percentage reduction in the numerator than in the denominator, causing a decline in the gross profit

percentage

FAR: 7/17/10 missed exam FML reschedule 8/29/10-77 EPIC!
REG: 5/31/11-73 SMH, 8/31/11-85
BEC: 4/15/10-72 : retake 10/3/10-80
AUD: 11/28/10-74, 02/27/11-71 FML, 8/1/11-80
Ethics 10/22/22-80, retake 11/28/11 - 88

[thechamp26]

Manufacturing costs and net sales decreased in the numerator… Only net sales decreased in the denominator (by the same amount).

[killaking]

oh ok I see now, man thanks

FAR: 7/17/10 missed exam FML reschedule 8/29/10-77 EPIC!
REG: 5/31/11-73 SMH, 8/31/11-85
BEC: 4/15/10-72 : retake 10/3/10-80
AUD: 11/28/10-74, 02/27/11-71 FML, 8/1/11-80
Ethics 10/22/22-80, retake 11/28/11 - 88

[Author]

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