Which of the following statements is the most reasonable conclusion from the given information below of ABC Company? Net profit: P54,000 Gross profit margin: 45% Gross profit: P675,000 Industry average return on sales: 4.9% ABC Company's profit margin is above the industry average, which suggests it generating less income per peso of sales as A the average firm in the industry. ABC Company's profit margin is below the industry average, which suggests it generating more income per peso of sales as B the average firm in the industry. ABC Company's profit margin is below the industry average, which suggests it generating less income per peso of sales as the average firm in the industry. ABC Company's profit margin is above the industry average, which suggests it generating more income per peso of sales as D the average firm in the industry.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which of the following statements is the most reasonable conclusion from the given information below of ABC Company?
Net profit: P54,000
Gross profit margin:
45%
Gross profit: P675,000
Industry average return on sales:
4.9%
ABC Company's profit margin is above the industry average, which suggests it generating less income per peso of sales as
(A)
the average firm in the industry.
ABC Company's profit margin is below the industry average, which suggests it generating more income per peso of sales as
B
the average firm in the industry.
ABC Company's profit margin is below the industry average, which suggests it generating less income per peso of sales as
the average firm in the industry.
ABC Company's profit margin is above the industry average, which suggests it generating more income per peso of sales as
the average firm in the industry.
Transcribed Image Text:Which of the following statements is the most reasonable conclusion from the given information below of ABC Company? Net profit: P54,000 Gross profit margin: 45% Gross profit: P675,000 Industry average return on sales: 4.9% ABC Company's profit margin is above the industry average, which suggests it generating less income per peso of sales as (A) the average firm in the industry. ABC Company's profit margin is below the industry average, which suggests it generating more income per peso of sales as B the average firm in the industry. ABC Company's profit margin is below the industry average, which suggests it generating less income per peso of sales as the average firm in the industry. ABC Company's profit margin is above the industry average, which suggests it generating more income per peso of sales as the average firm in the industry.
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