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Lumber Liquidators, Inc., competes with Lowe’s in product lines such as hardwood flooring, moldings, and noise- reducing underlay. The two companies reported the following financial results in fiscal 2013:
Required:
1. Calculate the difference in gross profit percentage between Lumber Liquidators and Lowe’s.
2. Calculate the difference in net profit margin between Lumber Liquidators and Lowe’s.
3. Using your answers to requirements 1 and 2, identify the company that best controls operating expenses other than cost of goods sold.
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