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Sagot :
Answer:
B. The ratio is getting worse because expenses are growing faster than sales.
Explanation:
OPERATING EXPENSES-COST TABLE
2012 2011 2010
Operating exp 48,000 44,000 42,000
Interest expense 12,000 9,000 6,000
TOTAL 60,000 53,000 48,000
As can be clearly seen above that operating expenses having been increasing at a very high speed as compared to sales volumes and gross profits hence, leading to a fall in overall profitability.
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