Entity B has a gross profit ratio of 30% and a profit margin of 8%. Industry aworages for similar companies are 30% for gross profit ratio and 16% for proft miargin. Which of the following may explain this: Entity B is receiving less in sales price for merchandise than its competitors. Entity B is paying more for menchandise than its competitors. Entity Bs operating expenses are significantly lower than competitors. Entity B's operating experses are significantly higher than competitors. 18 points Entity H uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $230,000. Managertent estimates that 5% of