(Solution) - The following calculations have been made using Metro Tech s inc -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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The following calculations have been made using Metro Tech's income statement:
Sales growth, current year ......20%
Gross profit margin, current year ....64%
Gross profit margin, last year ....52%
Discuss all the reasons you can think of to explain the 12% change in gross profit margin. Which reasons would be considered a quality issue by an analyst?