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A Co and G Co

Question 24

Multiple Choice

A Co. and G Co. are competitors in the biotechnology market. In 20X3, A Co. reported a gross profit percentage of 86.3% while G Co's percentage was 80.7%. What is the most likely cause of G Co.'s lower gross profit percentage?


A) Increased product selling prices
B) Decreased product costs
C) Smaller scale operations than A Co.
D) Larger scale operations than A Co.

Correct Answer:

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