-Three of the companies are upscale stores and one is a discount store.Which company is most likely to be the discount store?

Question

Quizplus · Accepted Answer

Discount stores have lower gross margin percentages than upscale department stores.
Gross margin percentage:
Company A: $32,000 ÷ $80,000 = 40%
Company B: $45,000 ÷ $180,000 = 25%
Company C: $48,000 ÷ $120,000 = 40%
Company D: $40,000 ÷ $100,000= 40%
The discount retailer would have a lower gross margin percentage.

-Three of the Companies Are Upscale Stores and One Is