Taking each statement individually, which of the following explains the movement in the gross profit margin from 20X4 to 20X5 as calculated by the analysts?

Taking each statement individually, which of the following explains the movement in the gross profit margin from 20X4 to 20X5 as calculated by the analysts?
A . Increase in the levels of closing inventory of raw materials.
B . Reduction in the cost of raw materials NOT passed onto customers.
C . Prompt payment discounts no longer offered to customers.
D . Increase in the volume of sales over the year.

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Answer: B