Question

CleteCorp has a gross profit margin of 50. CleteCorp's gross profitability has ________, and CleteCorp's gross profitability is ________ than the industry average.

1) declined; still better
2) declined; worse
3) improved; better
4) improved; still worse

Answer 1

CleteCorp's gross profit margin has declined but is still better than the industry average.

Step-by-step explanation:

Gross profit margin is a measure of a company's profitability. It is calculated by dividing the gross profit of a company by its revenue and expressing it as a percentage. In this case, CleteCorp has a gross profit margin of 50, which means that for every dollar of revenue, the company keeps 50 cents as gross profit.

If CleteCorp's gross profitability has declined, it means that their gross profit margin has decreased over time. In the given answer choices, the only option that reflects a decline in gross profitability is option 1) declined; still better. This means that CleteCorp's gross profitability has declined, but it is still better than the industry average.