Blue ace autos inc. and ferdova autos inc. are two competing automobile companies. while blue ace autos' cost of goods sold/revenue is 63.4 percent, the cost of goods sold/revenue of ferdova autos is 54.2 percent. what do you infer from this financial data?
Given: Blue Ace Autos Inc: cost of goods sold / revenue = 63.4% Ferdova Autos Inc.: cost of goods sold / revenue = 54.2%
The percentage rate represents the part of the revenue that the cost of goods sold is a part of. This means that the revenue is 100%. The difference of the revenue and cost of good sold is the profit. The higher the percentage of the profit, the better.
