Accounting for IGCSE & O level - Final Statements (Section 14 - No. 14)
What impact would a decrease in sales revenue have on the gross profit, assuming COGS remains constant?
Increase gross profit
Decrease gross profit
No impact on gross profit
Could increase or decrease gross profit.
Explanation
Gross Profit = Sales Revenue - Cost of Goods Sold. Decreasing sales revenue while keeping COGS constant would decrease the gross profit.
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