The gross profit ratio will typically be higher for companies that:

Question

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The gross profit ratio is higher for companies that sell products that are more highly specialized because these products often have higher margins. Specialized products can command higher prices due to their unique features or brand value, leading to a higher gross profit ratio. Collecting cash more quickly (A) and purchasing inventory more frequently (B) affect cash flow and inventory turnover but not directly the gross profit ratio.

The Gross Profit Ratio Will Typically Be Higher for Companies