LA Company has a gross profit percentage of 61%, while NY Company has a gross profit percentage of 37%. Which of the following is true?
A) LA Company will report a higher net income than NY Company.
B) NY Company must have a greater sales volume than LA Company.
C) LA Company is more efficient at controlling selling, general, and administrative expenses than NY Company.
D) LA Company and NY Company both earn enough on each sale to make a contribution to their operating costs.
Correct Answer:
Verified
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