A company sells three different products.The first costs $8 and sells for $16,the second costs $18 and sells for $45,while the third costs $36 and sells for $120.
A)The gross profit percentages on the individual products are 50%,60%,and 70%,respectively.
B)The third product is the highest margin good.
C)If the company can persuade some customers to switch to the third product,overall gross profit percentage will increase.
D)All of the above.

Question

Quizplus · Accepted Answer

Option A is true as the gross profit percentage for the first product is 50%, the second product is 60%, and the third product is 70%. 
Option B is true as the third product has the highest markup percentage of 233.33% ($120 - $36)/$120. 
Option C is also valid as persuading customers to switch to the third product will increase the overall gross profit percentage of the company. Therefore, Options A, B, and C are correct, making Option D the correct answer.

A Company Sells Three Different Products