If product A has selling price of $100 and 25% gross margin and product B has $75 selling price and 35% gross margin. Which would you pick?

Question

Anonymous · Accepted Answer

Pick for what? Assuming pick to sell. The answer would be B. The profit is Gross Margin. $75 x 0.35 = $26.25 profit (versus $100 x 0.25 = $25.00 profit.)

Anonymous · Answer

Correct answer is actually B. $75 x .35 is $26.25, which is greater than $25, and moreover assuming all other things equal, customers would be more likely to buy a product that is more competitively priced.

Anonymous · Answer

The correct answer is A, because 100 x 25%= $25 while $75 x 35%= 22.50; The cm/ per unit is higher for product A

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