Purrfect Pets Announces That Its Gross Profit Rose 5% and Its

question 77

Multiple Choice

Purrfect Pets announces that its gross profit rose 5% and its net income fell.Which of the following statements is true?

• A)This is not possible given that net income is determined by gross profit.
• B)This must mean that other expenses have risen more than 5%.
• C)This must mean that other expenses fell.
• D)This must mean that sales revenue fell.

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Definitions:

Production Department

The production department is the segment of a business that is responsible for manufacturing its products or delivering its services.