Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two car dealerships have similar annual net sales. One car dealership has a gross profit rate of 52.6%, whereas the other car dealership has a

Two car dealerships have similar annual net sales. One car dealership has a gross profit rate of 52.6%, whereas the other car dealership has a gross profit rate of 23.7 percent. Which of the following explanations is the most likely reason for this difference?

A : The car dealership with a gross profit rate of 52.6% has lower inventory turnover, whereas the car dealership with a gross profit rate of 23.7% has higher inventory turnover.

B : The car dealership with a gross profit rate of 52.6% sells high-end sports and luxury vehicles, whereas the car dealership with a gross profit rate of 23.7% sells sedans and used vehicles.

C : The car dealership with a gross profit rate of 52.6% sells sedans and used vehicles, whereas the car dealership with a gross profit rate of 23.7% sells high-end sports and luxury vehicles.

D : The car dealership with a gross profit rate of 52.6% has higher inventory turnover, whereas the car dealership with a gross profit rate of 23.7% has lower inventory turnover.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Accounting And Reporting

Authors: Ciaran Connolly

2nd Edition

0903854724, 978-0903854726

More Books

Students also viewed these Accounting questions

Question

Why is it a good idea to avoid being judgmental? (p. 177)

Answered: 1 week ago

Question

OUTCOME 6 Explain and give examples of diversity management.

Answered: 1 week ago