(Solved): A company's gross profit rate increased in the current year relative to the prior year. Which of the ...

A company's gross profit rate increased in the current year relative to the prior year. Which of the following would be a possible explanation for this change? The company increased its product markdowns and discounts offered to customers in the current year. The company's new profit lines with lower margins became a larger component of their sales. The company's average margin between the selling price and the inventory cost decreased over this two-year period. The company's global sourcing efforts at the beginning of the current year resulted in a lower cost of merchandise sold. None of the above would explain Haverty's increase in gross profit rate.