Operating expenses as a percentage of sales:
Company A: $9,600/$80,000 = 12.0%
Company B: $12,600/$180,000 = 7.0%
Company C: $10,800/$120,000 = 9.0%
Company D: $10,000/$100,000 = 10.0%
-Three of the companies are high-end department stores such as Saks Fifth Avenue.One company is a discount retailer similar to WalMart.Which company is most likely to be the discount store?

Question

Quizplus · Accepted Answer

Discount retailers typically have lower operating expenses as a percentage of sales compared to high-end department stores. Company B has the lowest percentage at 7.0%, suggesting it is most likely the discount retailer.

Operating Expenses as a Percentage of Sales