BC Company Has a Gross Profit Percentage of 61% While

question 72

Multiple Choice

BC Company has a gross profit percentage of 61% while AB Company has a gross profit percentage of 37%.Which of the following is true?

• A)BC Company will report a higher net income than AB Company.
• B)AB Company must have a greater sales volume than BC Company.
• C)BC Company must be more efficient at controlling selling,general,and administrative expenses than AB Company.
• D)None of the answers are acceptable.

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Definitions:

Target Market

A specific group of consumers at which a company aims its products and services.

Profit

The financial gain obtained when the revenue from business operations exceeds the expenses, taxes, and costs associated with running the business.

Skilled Employees

Workers who possess specialized training, knowledge, or expertise, making them valuable assets to organizations in achieving operational efficiency and competitive advantage.

Local Banker

A banking professional operating within a community, offering financial services and advice to local residents and businesses.