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 costHigher gross profit margin Higher percentage operating expense（）①A.ContinentalNational ②B.National Continental ③C.ContinentalContinental
A. ①
B. ②
C. ③
参考答案：C
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.