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.
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.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
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C5
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facc2ee48-86f5-4e60-bfe9-dbddc1c5d663%2F30a1ccd7-f3f1-4ee1-a6bf-e311403777c4%2Fkkhipeg_processed.png&w=3840&q=75)
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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