Gross Profit Margin Operating Margin Net Profit Margin hich of the following statements is true? Walmart FYE 1/31/11 25.3% 6.1% 3.9% A. Based on all three measures of profitability, Walmart is performing better. OB. From a value investor's perspective, Walmart is performing better. Target FYE 1/29/11 32.1% 7.8% 4.3%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 18E
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Gross Profit Margin
Operating Margin
Net Profit Margin
Which of the following statements is true?
O A. Based on all three measures of profitability, Walmart is performing better.
O B.
Walmart FYE 1/31/11
25.3%
6.1%
3.9%
O D.
From a value investor's perspective, Walmart is performing better.
Target FYE 1/29/11
32.1%
7.8%
4.3%
O C.
In the eyes of a value investor, a higher profitability does not mean a more profitable investment.
Based on all three measures of profitability, Target is able to mark up goods and services as a price leader.
Transcribed Image Text:Gross Profit Margin Operating Margin Net Profit Margin Which of the following statements is true? O A. Based on all three measures of profitability, Walmart is performing better. O B. Walmart FYE 1/31/11 25.3% 6.1% 3.9% O D. From a value investor's perspective, Walmart is performing better. Target FYE 1/29/11 32.1% 7.8% 4.3% O C. In the eyes of a value investor, a higher profitability does not mean a more profitable investment. Based on all three measures of profitability, Target is able to mark up goods and services as a price leader.
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