If the following facts were known, which one would strengthen the argument that a company is profitable?
A) The company's sales revenue is low relative to its cost of goods sold.
B) The company's cost of goods sold is low relative to its sales revenue.
C) The number of customers has remained stable for some time.
D) The company has had the same owners over its lifetime.
E) The company's selling expenses are high compared to its administrative expenses.

Question

Quizplus · Accepted Answer

If the company's cost of goods sold is low relative to its sales revenue, it suggests that the company is making a higher profit margin on each sale, which would strengthen the argument that the company is profitable.

If the Following Facts Were Known, Which One Would Strengthen