if-a-company-reduces-its-cost-of-goods-sold-while-maintaining-the-same-sales-rev

Question

If a company reduces its cost of goods sold while maintaining the same sales revenue, what is the likely effect on the gross profit percentage?

Accepted Answer

The gross profit percentage will increase.

Answer

The gross profit percentage will decrease.

Answer

The gross profit percentage will remain the same.

Answer

The gross profit percentage will become negative.