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Analyzing Income Statement 2

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Running head: ANALYZING INCOME STATEMENT Analyzing income statement Student’s name Institution affiliation Date 1 ANALYZING INCOME STATEMENT 2 Analyzing income statement Discuss all the reasons that might explain an increase or decrease in gross profit A raise or a reduction in gross profit in any company is reasonable. Sometimes a company could have a decreasing gross profit margin but have an increase in the total loss this can be attained by either lowering or increasing the price of commodities or goods that it sells or by using either high quality (Ott, 2015). This makes the products to be more costly due to an increase in the cost of materials to the stated rights. The other reason is lowering a price that pulls in more customers, which could eventually increase the profit margin. Additionally, products or higher quality can retain the customers; this helps in raising profi ...
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