Three of the companies are high-end department stores such as Neiman Marcus. One company is a discount retailer similar to Wal-Mart. Which company sells merchandise at comparatively lower prices?

Question

Quizplus · Accepted Answer

Gross margin percentage:
Company A: $16,000/$40,000 = 40%
Company B: $24,000/$60,000 = 40%
Company C: $20,000/$50,000 = 40%
Company D: $22,500/$90,000 = 25%
The lower-price retailer would have a lower gross margin percentage.

Three of the Companies Are High-End Department Stores Such as Neiman