La Paz Company Reported the Following Data Which of the Following Statements Is an Accurate Conclusion About

Multiple Choice

La Paz Company reported the following data:
$\begin{array}{|l|r|r|r|r|}\hline&&&\text {Amount of}\\&&&\text {Increase}\\ \text { (Dollar cmounts in millions) } & 2014 & 2013 & \text { (Decrease) } & \text { Percentage } \\\hline \text { Revenues } & \$ 6,35 & \$ 4,92 & \$ 1,435 & 29.2 \% \\\hline \text { Cost of revenues } & 3,370 & 2,20 & 1,170 & 53.2 \% \\\hline \text { Gross profit } & 2,98 & 2,72 & 265 & 9.7 \% \\\hline \text { Operating expenses: } & & & & \\\hline \text { Sales and marketing expense } & 675 & 580 & 95 & 16.4 \% \\\hline \text { General and administrative expense } & 410 & 429 & (15) & -3.5 \% \\\hline \text { Research and development expense } & 470 & 390 & 80 & 20.5 \% \\\hline \text { Other expense } & 400 & 695 & (295) & -42.4 \% \\\hline \text { Total operating expenses } & \$ 1,95 & \$ 2,090 & \$(135) & -6.5 \% \\\hline\\\hline \text { Income before income tax } & \$ 1,030 & \$ 630 & \$ 400 & 63.5 \% \\\hline \text { Income tax expense } & 230 & 210 & 20 & 9.5 \% \\\hline \text { Net income(loss) } & \$ 800 & \$ 420 & \$ 380 & 90.5 \% \\\hline \end{array}$

Which of the following statements is an accurate conclusion about the 2014 results, based on the above data?

A) Revenues fell and expenses rose over the 2-year period, resulting in a drop in net income.
B) Net income improved, despite a rise in operating expenses.
C) Gross profit declined over two years, resulting in a drop in net income.
D) The increase in net income resulted primarily from an increase in gross profit coupled with a decrease in operating expenses.