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 gross profit percentage is calculated as (Sales - Cost of Goods Sold) / Sales. Therefore, a higher gross profit percentage indicates that the company is controlling its cost of goods sold, which means they are able to produce or purchase goods at a lower cost. Hence, option D is the correct choice. There is no clear indication about sales volume, income tax expenses, or operating expenses based on the given information.

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