It is not possible for a company with a high gross profit margin to have a low operating profit.

Question

Quizplus · Accepted Answer

A high gross profit margin simply means that the company is generating more revenue from its sales than it is spending on direct costs. However, there could be other operating expenses such as salaries, rent, marketing, etc. that reduce the operating profit, even if the gross profit margin is high. So, it is possible for a company with a high gross profit margin to have a low operating profit.

It Is Not Possible for a Company with a High