Company a Has a Profit Margin on Sales Ratio of 8

question 37

Multiple Choice

Company A has a profit margin on sales ratio of 8% and Company B has a profit margin on sales ratio of 12%.Which of the following must be true?

• A)Company A must charge less for its goods than Company B.
• B)Company A must have a lower gross profit margin than Company B.
• C)Company A must make less per dollar of sales than Company B.
• D)Company A must charge more for its goods than Company B.

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