Pixley Potter Limited Has the Following Results for 20X5 and 20X6

Multiple Choice

Pixley Potter Limited has the following results for 20X5 and 20X6: A recent survey of similar businesses shows that between 20X5 and 20X6 revenue increased on average by 2.2% and gross profit by 5.0%.
Which one of the following statements is correct?
A horizontal analysis of Pixley Potter's revenue and gross profit figures for 20X6 and 20X7 shows:

A) The company had a higher than average increase in revenue and a lower than average increase in gross profit.
B) The company had a lower than average increase in revenue and a lower than average increase in gross profit.
C) The company had a lower than average increase in revenue and a higher than average increase in gross profit.
D) The company had a higher than average increase in revenue and a higher than average increase in gross profit.