Company A and Company B operates in the wholesale shoe industry in Wisconsin. In 2009, Company A had a gross profitof$800,000; whereas Company B had a gross profit of $240,000. Both companies had approximately $2.4 million in sales.
Required:
(a) Identify at least two factors that could account for the large difference in the two companies’ gross profits.
(b) If you were the president of Company B, what strategies might you implement to increase your firm’s gross profit?