HarborTech Inc. reports the following for the current year: Item Amount Depreciation 40 COGS 600 Sales 900 SG&A 120 The peer group average gross profit margin is 35%. How does Harbortech compare to its peers? a. HarborTech's 25% gross profit margin is inferior to its peer group. b. HarborTech's 33.33% gross profit margin is slightly inferior to its peer group. c. HarborTech's 40% gross profit margin is superior to its peer group. d. HarborTech's 35% gross profit margin is equal to its peer group-no better or worse.
HarborTech Inc. reports the following for the current year: Item Amount Depreciation 40 COGS 600 Sales 900 SG&A 120 The peer group average gross profit margin is 35%. How does Harbortech compare to its peers? a. HarborTech's 25% gross profit margin is inferior to its peer group. b. HarborTech's 33.33% gross profit margin is slightly inferior to its peer group. c. HarborTech's 40% gross profit margin is superior to its peer group. d. HarborTech's 35% gross profit margin is equal to its peer group-no better or worse.
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 15SP
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Transcribed Image Text:HarborTech Inc. reports the following for the current year:
Item
Amount
Depreciation 40
COGS
600
Sales
900
SG&A
120
The peer group average gross profit margin is 35%.
How does Harbortech compare to its peers?
a. HarborTech's 25% gross profit margin is inferior to its peer group.
b. HarborTech's 33.33% gross profit margin is slightly inferior to its peer group.
c. HarborTech's 40% gross profit margin is superior to its peer group.
d. HarborTech's 35% gross profit margin is equal to its peer group-no better or worse.
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