ABC Corporation Corporation’s (a large manufacturing firm) gross profit margin is much larger than the other firms in the industry. Which of the following is the most likely explanation? Firm A has a very old, very inefficient production facility. Firm A faces a higher tax rate. Firm A uses too much middle management. Firm A is the only firm in the industry that does not offer a 2-year warranty on their product Firm A has the only non-unionized workforce in the industry
Answer : Firm A has the only non-unionized workforce in the industry
Explaination
Because this firm has non-unionized workforce in the industry. so the production process continued and it will not be stopped by strike or other activity which will be carried by unionized work force like in other firm in the industry.
So prouction will be high and they can sales highervolume so ultimately goss profit will increase
