Rent and insurance costs are examples of variable costs

In 2001, Home Depot's cost of goods sold percentage was 70.1% and its selling and store operating costs was 18.6% of sales. In 2000, their cost of goods sold percentage was 70.3% while its selling and store operating costs was 17.7% of sales. What effect would the change in these percentages have on 2001's gross margin percentage and profit margin percentage?

A. Cost of goods sold would increase gross margin and profit margin percentages but selling and store operating costs would decrease gross margin and profit margin percentages. B. Cost of goods sold would decrease gross margin and profit margin percentages but selling and store operating costs would increase gross margin and profit margin percentages. C. Cost of goods sold would increase gross margin and profit margin percentages but selling and store operating costs would decrease the profit margin percentage. D. Cost of goods sold would decrease gross margin and profit margin percentages but selling and store operating costs would increase profit margin percentage.

A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect

Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. Based on historical data, the manufacturer produces 0.1 percent defective displays. If they inspect 5000 phones each day for the next 10 days, what are the upper and lower control limits for their control chart if their sample mean mirrors their historical process average? A) 0.0002, 0.0001 B) 0.0142, 0.0058 C) 0.1127, 0.0873 D) 0.0023, 0.0000