Two of the lawn mowers sold by Garden Products Co. arethe LawnMaster and the Mark 5. LawnMasters sell for $250apiece, which results in a 35 percent gross profit margin.Each Mark 5 costs Garden Products $300 and sells for $400.Indicate all correct answers.a. The dollar amount of gross profi t is greater on the saleof a Mark 5 than a LawnMaster.b. The gross profi t margin is higher on Mark 5s than onLawnMasters.c. Garden profi ts relatively more by selling one Mark 5than by selling one LawnMaster.d. Garden profi ts more by selling $2,000 worth of Mark 5sthan $2,000 worth of LawnMasters.
Two of the lawn mowers sold by Garden Products Co. arethe LawnMaster and the Mark 5. LawnMasters sell for $250apiece, which results in a 35 percent gross profit margin.Each Mark 5 costs Garden Products $300 and sells for $400.Indicate all correct answers.a. The dollar amount of gross profi t is greater on the saleof a Mark 5 than a LawnMaster.b. The gross profi t margin is higher on Mark 5s than onLawnMasters.c. Garden profi ts relatively more by selling one Mark 5than by selling one LawnMaster.d. Garden profi ts more by selling $2,000 worth of Mark 5sthan $2,000 worth of LawnMasters.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Two of the lawn mowers sold by Garden Products Co. are
the LawnMaster and the Mark 5. LawnMasters sell for $250
apiece, which results in a 35 percent gross profit margin.
Each Mark 5 costs Garden Products $300 and sells for $400.
Indicate all correct answers.
a. The dollar amount of gross profi t is greater on the sale
of a Mark 5 than a LawnMaster.
b. The gross profi t margin is higher on Mark 5s than on
LawnMasters.
c. Garden profi ts relatively more by selling one Mark 5
than by selling one LawnMaster.
d. Garden profi ts more by selling $2,000 worth of Mark 5s
than $2,000 worth of LawnMasters.
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