Compute net sales, gross profit, and the gross margin ratio for each separate case a through d. Interpret the gross margin ratio for case a.
|
|
a |
b |
c |
d |
|
Sales |
$130,000 |
$512,000 |
$35,700 |
$245,700 |
|
Sales discounts |
4,200 |
16,500 |
400 |
3,500 |
|
Sales returns and allowances |
17,000 |
5,000 |
5,000 |
700 |
|
Cost of goods sold |
76,600 |
326,700 |
21,300 |
125,900 |