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QUESTION 6 What might it suggest if a businesss gross margin decreases from one period to the ne 1. The companys cost struc

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Answer #1

The answer is

C. ii and III only

Gross margin = sales - cost of goods sold

Decrease in gross margin means that the product costs have increased

It is also possible that the revenue has decreased but the cost was not flexible which lead to a decrease in gross margin

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