CFA Practice Question

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CFA Practice Question

Financial results for three major players of local grocery market in a city ($ millions):

Companies | A | B | C
Revenue | 25 | 22 | 30
Operating margin | 12% | 15% | 18%

Based on the data presented, which company most likely has economies of scale?
A. Company A.
B. Company B.
C. Company C.
Explanation: It has the highest sales and highest operating margin.

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