Question: why could a firm have a higher than industry average gross profit margin but end up with a lower than industry average operating profit margin?

why could a firm have a higher than industry average gross profit margin but end up with a lower than industry average operating profit margin? a. higher than average interest expense b. lower than average interest expense c. higher than average operating expenses d. lower than average operating expenses

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming...

Question 19 2 pts Why could a firm have a higher than industry average gross profit margin but end up with a lower than industry average operating profit margin? higher than average interest expense...

Question 1 9 Why could a firm have a lower than industry average gross profit margin but end up with a higher than industry average operating profit margin? higher than average interest expense lower...

Why could a firm have a higher than industry average gross profit margin but end up with a lower than Industry average operating profit margin? O higher than average interest expense lower than...

why could a firm have a lower than industry average gross profit margin but end up with a higher thab industry average operating profit margin

Why could a firm have a lower than industry average gross profit margin but end up with a higher than industry average operating profit margin? lower than average operating expenses higher than...

Why could a fith have a lower than industry average gross profit margin but end up with a higher than industry average aperating profft matgin? highier than average interest expense tower than...

can you please help me with this they are asking for... the other question are in the documents Current Ratio Working Capital Total debit to assest ratio Long term debt to equity ratio Long term debt...

1. Compute the profitability ratios using the data below. Corrigan Corporation is a manufacturing plant that produces furniture. Fill out the table and briefly assess how the company changed Corrigan...

The U.S. Census Bureau publishes data on factory orders for all manufacturing, durable goods, and nondurable goods industries. Shown here are factory orders in the United States from 1987 through...

Firms HD and LD each have $30m in invested capital, $8m of EBIT, and a tax rate of 25%. Firm HD has a D/E ratio of 50% with an interest rate of 8% on its debt. Firm LD has a debt-to-capital ratio of...

In a limited partnership, one or more _ _ _ _ _ partners manage the business and one or more _ _ _ _ _ partners contribute capital. a . limited; general b . senior; general c . general; limited d ....

17 10 points Problem 5-22 T-Accounts; Overhead Rates; Journal Entries [LO3, LO4, LO5, LO7] Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Job 106, and Job 107-were worked...