NO.PZ2019120301000047
问题如下：
Question
Oceanaqua Apparel (OA) is a manufacturer of swimwear. Abbreviated common-size income statements and relevant industry data are presented below.
选项：
A.effective tax rate has been holding steady at approximately 2%. B.revenues per dollar of sales costs are falling over the time period. C.profit margins indicate performance superior to the industry average.解释：
Solution
B is correct. OA’s cost of sales have been steadily rising, causing the firm’s gross profit margin to fall below the industry average. A falling gross margin indicates falling revenue per dollar of sales costs.
A is incorrect because the effective tax rate did not average 2% over the period. In the case of taxes, it is more meaningful to compare the amount of taxes paid with the amount of pre-tax income, then examine the causes for any differences in effective tax rates. Although taxes as a percent of sales has held steady at roughly 2%, OA’s corporate tax rate exceeded 20% each year.
Tax rate = Taxes/Earnings before taxes
2013: 1.9%/8.1% = 23.5%
2014: 2.0%/9.2% = 21.7%
2015: 2.0%/9.9% = 20.2%
C is incorrect because OA’s industry-relative performance shows below-average gross margin results, in contrast to the net profit margin, which exceeds the industry average.
可以解释一下C吗？industry average在哪看
