Wilhelm Company's gross profit percentages for the past 3 years are: Based on the above data,what can be said about the Wilhelm Company?

Question

Wilhelm Company's gross profit percentages for the past 3 years are:  Based on the above data,what can be said about the Wilhelm Company?

Quizplus · Accepted Answer

The consistent gross profit percentages over the past 3 years indicate that the company is effectively controlling its cost of goods sold. This means that the company is able to maintain a high level of profitability despite fluctuations in sales volume or operating expenses. The information provided does not suggest anything about income tax expenses, so option B can be eliminated. There is also no indication that sales volume is decreasing, so option A can be eliminated as well. Option C may be true, but it is not the most logical conclusion to draw from the given data.

Wilhelm Company's Gross Profit Percentages for the Past 3 Years