Gilbert's Hydraulics Has Provided You with the Following Selected Information

Multiple Choice

Gilbert's Hydraulics has provided you with the following selected information from 2020 and 2021: $$\begin{array} { l r r } &2021 & 2020\\\hline\text { Sales } & { \$ } & { \$740,000 } \\& 785,000 & \\\text { Sales returns and allowances } & 55,200 & 52,000 \\\text { Cost of goods sold } & 358,000 & 305,000 \\\text { Operating expenses } & 285,000 & 255,000 \\\text { Profit } & 86,800 & 128,000\end{array}$$ Which of the following best interprets Gilbert's profit margin?

A) Profit margin has weakened compared to prior year, decreasing from 45.6% to 41.2%.
B) Profit margin has weakened compared to prior year, decreasing from 18.6% to 11.9%.
C) Profit margin has weakened compared to prior year, decreasing from 17.3% to 11.1%.
D) Profit margin has weakened compared to prior year, decreasing from 55.7% to 50.9%.