If Net Sales Increases and Cost of Goods Sold Decreases

question 25

Multiple Choice

If net sales increases and cost of goods sold decreases, the gross profit ratio:

• A)remains the same.
• B)decreases.
• C)increases.
• D)cannot be determined from the information given.

---

Definitions:

Compensatory Damages

Financial reparations awarded to a plaintiff to compensate for loss, injury, or harm suffered due to the defendant's actions.

Breaching Party

The entity or individual that fails to fulfill their contractual obligations, thereby violating the contract.

Technical Injury

A legal injury claimed in a lawsuit, often without tangible harm, based on a technical violation of a statute or regulation.

Actual Damage

Financial loss or harm that can be quantified or specifically identified, resulting from the breach of a legal duty or infringement of rights.