Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Question
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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