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Company a Has a Profit Margin on Sales Ratio of 8

Question 217

Multiple Choice

Company A has a profit margin on sales ratio of 8% and Company B has a profit margin on sales ratio of 12%.Which of the following must be true?


A) Company B must charge more for its goods than Company A.
B) Company B must have a higher gross profit margin than Company A.
C) Company B's expenses must be less than Company A's.
D) Company B must make more on each dollar of sales than Company A.

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