Why did KAPA's operating expenses surge in Q3 2024?

KAPA's operating expenses surged in Q3 2024 due to several factors:

1. Increased Inventory Scrap Costs: The company experienced a significant decrease in gross profit margin, which is attributed to increased inventory scrap costs. This suggests that the cost of producing and managing inventory rose, impacting the company's profitability.
2. Purchase Price Variance from Increasing Vendor Costs: The increase in purchase price variance is a result of rising vendor costs. This indicates that KAPA had to pay more for raw materials or services from its suppliers, which directly affected the cost of goods sold and, consequently, the operating expenses.

In summary, the surge in KAPA's operating expenses in Q3 2024 is primarily due to increased inventory scrap costs and purchase price variance from increasing vendor costs.