Problem based on reported revenues


In 1998, 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 revenue than Coca-Cola, they 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 evidenced by their $13.0 billion gross profit amount

d. None of the above

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Problem based on reported revenues
Reference No:- TGS096689

Expected delivery within 24 Hours