Given below are two statements one labelled as Assertion A and the other labelled as Reason R Assert...........

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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):

Assertion (A): Increase in Gross Profit Ratio is a good indicator for a business firm.

Reason (R): Selling price may have increased without the same increase in the price of materials and wages.

In the context of the above two statements, which of the following is correct?

Codes:

Both (A) and (R) arc correct and (R) is the correct reason of (A).

Both (A) and (R) are correct but (R) is not the correct reason of (A).

Only (R) is correct.

Both (A) and (R) are wrong.

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Explanation:

- Assertion (A): Increase in Gross Profit Ratio is a good indicator for a business firm. This is generally true because it suggests improved profitability.

- Reason (R): Selling price may have increased without the same increase in the price of materials and wages. This is one possible reason for an increased Gross Profit Ratio.

- Both (A) and (R) are individually correct statements.

- However, (R) is a reason for (A).