fargo q 37

CFA Level II
#1

if it says the “COGS should be higher at 45%” my thoughts were that you increase cogs by 45%, instead they increased cogs to 45% of reveinue.

for #4, they specifically state of reveinue… my grammar knowlsdge states that if a noun is not specfied, you refer to the prevoiusly used noun.

am i missing something here? i need to know if im wrong or they’re wrong so i do it the right way for the test.

#2

Looks likse you just misread. The actual question says “Cost Of Goods Ratio should be higher at 45%”

two giveaways-

COGS Ratio= COGS/Revenue… which means the same as % of revenue

also

in this context the word “at” means equals, if they were implying it would be 45% higher they would have said higher “by” 45%