Assume That Net Sales Are Increasing Faster Than the Rate

question 45

Multiple Choice

Assume that net sales are increasing faster than the rate of inflation,and that the company's gross profit rate is rising.Of the following,the most logical conclusion is that:

• A)The company's cost of purchasing merchandise is rising rapidly.
• B)Operating expenses are falling.
• C)Demand for the company's products is very strong.
• D)The company has achieved an increase in sales volume by reducing its sales prices.

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