ABC Limited had a gross profit margin of 55%, while a direct competitor, XYZ Limited,...

CIMA BA3 Question Answer

ABC Limited had a gross profit margin of 55%, while a direct competitor, XYZ Limited, has a gross profit margin of 60%.

Which THREE of the following would be an acceptable explanation for this?

ABC Limited has a higher selling price than XYZ Limited

ABC Limited has a lower selling price than XYZ Limited

ABC Limited has better control of its production costs than XYZ Limited

XYZ Limited has better control of its production costs than ABC Limited

ABC Limited has a lower profit mark-up than XYZ Limited

ABC Limited has a higher profit mark-up than XYZ Limited

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