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Gross profit margin is an important ratio for merchandising and manufacturing firms, such as Best Buy and Mattel because: a. it measures the efficient use

Gross profit margin is an important ratio for merchandising and manufacturing firms, such as Best Buy and Mattel because:

a.

it measures the efficient use of total assets.

b.

cost of goods sold is typically the largest expense.

c.

it measures the ability to collect receivables.

d.

investments in real property are high.

e.

selling expenses, like advertising, are usually quite high.

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