If the industry at large has an average gross profit margin of 35 ...

[lb_gilbert]

If the industry at large has an average gross profit margin of 35 percent and the firm has averaged 30 percent for the past 5 years, then next year's gross margin should be somewhere between 30 and 35 percent. This is an example of which of the following factors?
 a. anticipated profit c. anticipated market changes
  b. industry average d. past profit

Question 2

Which of the following is not a factor to consider in setting corporate objectives?
 a. industry average profit c. anticipated profit
  b. forecasted profit d. All of the above are valid factors.

[pocatato]

Answer to Question 1

B
The industry average of sales, market share, profit, and cash flow can help the manager decide what the desired level should be.

Answer to Question 2

A
See Table 13-1