The Following Information Is from Megabux, Inc

question 22

Multiple Choice

The following information is from Megabux, Inc.'s annual report for the years ended December 31:

-Refer to the Megabux annual report above.Which of the following explains the change in the gross profit ratio over the three-year period?

• A)Foreign competition has made it difficult to sell as many products as Megabux sold in the past.
• B)Megabux has raised its selling price per unit.
• C)Suppliers may have raised the prices that Megabux must pay for the goods that it sells,but Megabux has not passed the higher costs on to its customers with higher selling prices.
• D)This is a trick question.The gross profit ratio has not changed over the three-year period.