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 above.

Question

Quizplus · Accepted Answer

Gross profit percentage alone does not determine net income, sales volume, or efficiency in controlling expenses. Other factors such as operating expenses, sales volume, and other income or expenses also affect these outcomes.

BC Company Has a Gross Profit Percentage of 61% While