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Question 1 ( 2 points) Baps Ltd and Caps Ltd are clothing manufacturers. Baps Ltd has a reported a gross profit margin twice that of

Question 1 ( 2 points) Baps Ltd and Caps Ltd are clothing manufacturers. Baps Ltd has a reported a gross profit margin twice that of Caps Ltd. As the analysts following Baps Ltd and evaluating its performance compared with its peers, you are puzzled by this significant outperformance. State two possible factors that may explain why Baps has higher gross profit margin than its

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