In what situations a company having high gross profit margin could end up with a low net

Fantastic news! We've Found the answer you've been seeking!

Question:

In what situations a company having high gross profit margin could end up with a low net profit? And whichmeasureof profitabilityis probablyofmajorimportanceto theinvestors? Why?

Posted Date: May 19, 2024 09:12 AM

See More Questions

Given a shaky economy and high heating costs, more and more households are struggling to pay utility bills (The Wall Street Journal, February, 14, 2008). Particularly hard hit are households with...
Four bits are transmitted over a digital communications channel. Each bit is either distorted or received without distortion. Let Ai denote the event that the ith bit is distorted, i = 1,.., 4. (a)...
A 3-kg collar C slides on a frictionless vertical rod. It is pushed up into the position shown, compressing the upper spring by 50 mm and released. Determine (a) The maximum deflection of the lower...
Identify each of the following decisions as most directly related to (a) cash flow management, (b) choice of inventory system, (c) foreign merchandising transactions, or (d) internal controls: 1....
Vaga Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Vaga Optics on December 31 of the current year as follows: Preferred 2% Stock, $120...
Find the equation for (a) the tangent plane and (b) the normal line at the point Po (6,0,6) on the surface 6z - X = 0. 2 (a) Using a coefficient of 2 for x, the equation for the tangent plane is (b)...
HQ Drugs is a distributor of pharmaceutical products. Its ABC system has five activities: Rick Flair, the controller of HQ Drugs, wants to use this ABC system to examine individual customer...
Question 11 2 Pts Ligons Are Hybrids From Male Lions And Female Tigers. They Are The Biggest Cat Known To Man So They Are Bigger Than Either Parent Species. Tigons Are Hybrids From Male Tigers And...
Program C++ a. function that accepts a size. The function allocates an array of a given size dynamically, fills it with random numbers and returns a pointer to it. b. function that accepts pointers...
What is the future value of a 5-year ordinary annuity with annual payments of $ 221 , evaluated at a 7.36 percent interest rate?
Assume that the heights of adult puffins are normally distributed, with a mean of = 13.6 inches and a standard deviation of o = 2.6 inches. For a random sample of 39 puffins, answer the following:...
A company makes computers and phones. Computers use 10 machine hours per unit. Phones use 4 machine hours per unit. Per unit variable costs and selling prices follow. Sales price per unit Variable...
comment on what you agree or disagree with in this article, which you can read more about Jollibee Foods Corporation (A) p. 239-241 and (B): International Expansion. Jollibee Foods Corporation is a...
You have taken a short position on a 3-moth SOFR futures contract at 98.52 and closed out at 99.76. Would you gain or lose on this contract? O Lose Gain Can't tell as you need the interest rate...
What is a manufacturing system?
Glamis plc manufactures, distributes and retails glassware. The following matters relate to its financial statements for the year ended 31 July 1998: (1) On 25 June 1998, one of the company's...
During the completion of the financial statements of Angus plc for the year ended 28 February 1997, the following matters have been brought to your attention. (1) On 1 March 1996, the company...
Shiny Bright plc was incorporated in 1980 to provide cleaning services for hotel, hospital and catering clients; it diversified into hotel ownership in the 1990s. In the early 1990s the company...