What are some of the business reasons as to why two companies in the same industry have different Gross Profit percentages?

1. Calculate the Gross Profit (GP) percentage (GP/ Sales) for 2 public companies in the same industry for the most recent year (e.g., Nike/ Under Armour, Lowes/Home Depot, etc.)

2. Explain why the GP % is low (25%), medium (50%), or high (75%).

3. Consider and describe the costs that go into Cost of Goods Sold for your company.

4. Explain why these two companies have different Gross Profit percentages.

5. What are some of the business reasons as to why two companies in the same industry have different Gross Profit percentages?

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