Reading 22 EOC Q2

CFA Level II
#1

Reading 22 EOC Q2 (Page 110, Book 2) Shouldn’t Net profit margin also decrease due to increase in depreciation expense (Option A)? I understand why C would be correct, but why will ‘A’ not be correct? May be I am missing something.

#2

I don’t have the book in front of me but check CFAI errata I think this might be one that was incorrect

#3

Yup, it is covered in Errata. Thanks! http://www.cfainstitute.org/Eratta/2011_level_II_errata.pdf

#4

http://www.analystforum.com/phorums/read.php?12,1237500