A declining gross profit may indicate [...] or [...]
Answer
increasing costs of production
declining prices.
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7. ANALYSIS OF THE INCOME STATEMENT n a profit. It indicates the basic cost structure of a company and shows the company's cost-price position. Comparing this ratio with the industry average over time shows the company's relative profitability within the industry.
<span>A declining gross profit may indicate increasing costs of production or declining prices. The ratio can be affected by changes in the company's product mix: a change toward items with higher (lower) margin raises (reduces) the gross profit margin. A small change in gross pro
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