If a cost complement is 0.8,that means _____.

Question

Quizplus · Accepted Answer

A cost complement of 0.8 means that 80 cents of each retail sales dollar goes towards covering the cost of merchandise. This implies that the gross margin is 20 percent (100 percent - 80 percent), which is the remaining amount after deducting the cost of merchandise from the retail sales price. This information alone does not provide enough evidence to conclude whether the firm is profitable or if stock shortages are present.

If a Cost Complement Is 0.8,that Means _____