Cormac Is a Sole Trader

Multiple Choice

Cormac is a sole trader.His revenue for 20X8 was £102 570.Cost of sales is £61 400 and expenses total £17 250.A recent business survey has found that, on average, businesses similar to Cormac's have a gross profit margin of 38.2% and a net profit margin of 24.3%. Which one of the following statements is correct?

A) Cormac's gross profit margin is higher than average and his net profit margin is lower than average.
B) Both Cormac's gross and net profit margins are higher than average.
C) Both Cormac's gross and net profit margins are lower than average.
D) Cormac's gross profit margin is lower than average and his net profit margin is higher than average.