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Bramble Ltd. has provided you with the following selected information from 2020 and 2021:
| | | 2021 | | 2020 |
| Sales | | $789000 | | $740000 |
| Sales returns and allowances | | 55100 | | 54500 |
| Cost of goods sold | | 355000 | | 309000 |
| Operating expenses | | 287000 | | 260000 |
| Profit | | 91900 | | 116500 |
Using a vertical trend analysis with net sales as a base, which of the following most accurately depicts the information stated above?
Profit as a percentage of net sales did not change significantly from 2020.
Cost of goods sold as a percentage of net sales remained consistent from 2020.
Cost of goods sold as a percentage of net sales decreased by 3 percentage points.
Profit as a percentage of net sales decreased by 4.5 percentage points.
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