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 above.

Question

Quizplus · Accepted Answer

While PepsiCo generated more revenue than Coca-Cola, their cost of goods sold was also significantly higher, resulting in a lower gross profit percentage.

Coca-Cola Reported Net Sales Revenues of $18