Which of the following statements is true? Gross profit margin and operating profit margin are complements of each other and the two percentages add up to 100% In capital intensive industries sales volume changes result in a stable gross profit margin. In stable industries, such as retailers, the gross profit margin is generally volatile from year to year. Fixed costs do not vary proportionately with volume changes but remain the same within a relevant range of activity.
Which of the following statements is true? Gross profit margin and operating profit margin are complements of each other and the two percentages add up to 100% In capital intensive industries sales volume changes result in a stable gross profit margin. In stable industries, such as retailers, the gross profit margin is generally volatile from year to year. Fixed costs do not vary proportionately with volume changes but remain the same within a relevant range of activity.
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
Problem 1PS
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Which of the following statements is true?
Gross profit margin and operating profit margin are complements of each other and the two percentages add up to 100%
In capital intensive industries sales volume changes result in a stable gross profit margin.
In stable industries, such as retailers, the gross profit margin is generally volatile from year to year.
Fixed costs do not vary proportionately with volume changes but remain the same within a relevant range of activity.
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