Key comparative figures for both Research In Motion and Apple COMPARATIVE follow.
|
|
Research In Motion |
Apple |
||
|
($ millions) |
Current Year |
Prior Year |
Current Year |
Prior Year |
|
Revenues (net sales) |
$14,953 |
$11,065 |
$42,905 |
$37,491 |
|
Cost of sales |
8,369 |
5,968 |
25,683 |
24,294 |
Required
1. Compute the dollar amount of gross margin and the gross margin ratio for the two years shown for each of these companies.
2. Which company earns more in gross margin for each dollar of net sales? How do they compare to the industry average of 40.0%?
3. Did the gross margin ratio improve or decline for these companies?