Which statements regarding beta corp profitability true

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Problem 1: Based on the information below, which of the following statements regarding Beta Corp.'s profitability is true?

Beta Corps Information:

                               2015           2014

Gross Margin         67.5%       66%

Return on Equity 28.79%       23.04%

Industry Averages:

Gross Margin 69.5%

Return on Equity 32.5%

a) Beta's gross margin has improved from the prior year, but it is weaker than the industry average. ROE has improved from the prior year, but it is weaker than the industry average.

b) Beta's gross margin has improved from the prior year and is stronger than the industry average. ROE has improved from the prior year, but it is weaker than the industry average.

c) Beta's gross margin has weakened from the prior year and is weaker than the industry average. ROE has weakened from the prior year, and it is weaker than the industry average.

d) Beta's gross margin has weakened from the prior year and is weaker than the industry average. ROE has weakened from the prior year, but it is stronger than the industry average.

Reference no: EM132683990

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