If a Company Achieves a Small Increase in Its Gross

question 94

Multiple Choice

If a company achieves a small increase in its gross profit percentage from one year to the next,the company:

• A)will always have a higher net income.
• B)must be obtaining products at a lower cost per unit.
• C)must have increased its sales revenue.
• D)none of the above.

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Definitions:

Quadratic Formula

A formula used to solve for x given a quadratic equation; x = (–b ± √(b^2 – 4ac)) / 2a.

Expense Equation

The sum of the fixed and variable expenses.

Average Cost

A method to determine the cost of goods sold or inventory valuation where all costs of acquisition are averaged over the total units available for sale.

Supply Functions

Mathematical expressions that describe how the quantity of goods or services offered by suppliers changes in response to price changes.