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6.4 Gross Profit Rate and Profit Margin Dani's Denim sells blue jeans. In...

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Accounting

6.4 Gross Profit Rate and Profit Margin
Dani's Denim sells blue jeans. In 2022. Dani's specialized in selling moderately priced jeans with a 25% markup. In 2023, Dani's
management decided to sell more expensive designer jeans with a markup of 30% and eliminate the moderately priced options. If
Dani's Denim has the same annual net sales in both years. how will Dani's gross profit rate in 2023 differs from its gross profit rate in
2022?
The gross profit rate in 2023 will be lower than in 2022.
The gross profit rate in 2023 will be about the same as in 2022.
The gross profit rate in 2023 will be higher than the gross profit rate in 2022.
The gross profit rate in 2023 will fluctuate unpredictably compared to 2022.
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