Which firm would you expect to have higher gross margins


Problem: Big Dairy (BD) is the largest processor and distributor of fresh milk to local supermarkets, with approximately half of its sales coming from generic supermarket brands. Lux Choc (LC) is the largest regional producer of high quality, very expensive luxury chocolate. Given their businesses, which firm would you expect to have higher gross margins and which a higher days inventory (in general takes longer to sell an item)? Group of answer choices Higher gross margin: BD Higher days inventory: BD Higher gross margin: LC Higher days inventory: BD Higher gross margin: LC Higher days inventory: LC Higher gross margin: BD Higher days inventory: LC

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Accounting Basics: Which firm would you expect to have higher gross margins
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