单选题
National Scooter Company and Continental Chopper Company are motorcycle manufacturing companies. National" s target market includes consumers that are switching to motorcycles because of the high cost of operating automobiles and they compete on price with other manufacturers. The average age of National" s customers is 24 years.
Continental manufactures premium motorcycles and aftermarket accessories and competes on the basis of quality and innovative design. Continental is in the third year of a five-year project to develop a customized hybrid motorcycle. Which of the two firms would most likely report higher gross profit margin, and which firm would most likely report higher operating expense stated as a percentage of total cost?
Higher gross profit margin Higher percentage operating expense
①A. Continental National
②B. National Continental
③C. Continental Continental
【正确答案】
C
【答案解析】Continental likely has the highest gross profit margin percentage since it is selling a customized product and does not compete primarily based on price. Because of the research and development costs of developing a new hybrid motorcycle, Continental likely has the higher operating expense stated as a percentage of total cost.