Coca-Cola reported net sales revenues of $18.8 billion and cost of goods sold of $5.6 billion while PepsiCo reported revenues of $22.3 billion and cost of goods sold of $9.3 billion.Which of the following statements is correct?
A)While PepsiCo generated more revenues than Coca-Cola,PepsiCo generated a lower gross profit percentage.
B)Coca-Cola generated a lower gross profit percentage because their sales revenue was lower.
C)PepsiCo did a better job of controlling product costs as a percentage of sales than did Coca-Cola as shown by their $13.0 billion gross profit.
D)None of the answers are acceptable.

Question

Quizplus · Accepted Answer

Gross profit = {(Net Sales - COGS)/Net Sales} * 100
Coca Cola: {(18.8 - 5.6)/18.8} * 100 = 70.2%
PepsiCo: {22.3 - 9.3)/22.3} * 100 = 58.3%.

Coca-Cola Reported Net Sales Revenues of $18