Which of the following, if True, would strengthen the case that Streeter & Sons is profitable?

Question

Quizplus · Accepted Answer

B) If the company's cost of goods sold is low relative to its sales revenue, this makes it likely that the company is profitable. By the same token, low sales revenue relative to the cost of goods sold (Choice A) would decrease the probability that it is profitable. Maintaining the same number of customers (Choice C) and having the same owners over time (Choice D) may or may not affect whether the company is profitable. It's not clear what effect on net income would result from the relationship of the company's selling expenses to its administrative expenses (Choice E), lacking data on sales revenue and cost of goods sold.

Which of the Following, If True, Would Strengthen the Case