The following information is for Barrel and its competitor Crate.
$$\begin{array} { | l | l | l | l | l | }
\hline & { \text { Barrel } } &&{ \text { Crate } } \
\hline & \underline { \text { Year 1 } } & \text { Year 2 } & \underline { \text { Year 1 } } & \text { Year 2 } \
\hline \text { Net sales } & \$ 347,850 & \$ 365.418 & \$ 579.750 & \$ 664,395 \
\hline \text { Cost of sales } & 121.747 & 146,167 & 318,862 & 312,265 \
& & & & \
\hline
\end{array}$$ Required:
1. Calculate the dollar amount of gross margin and the gross margin ratio to the nearest percent, for each company for both years.
2. Which company had the more favorable ratio for each year?
3. Which company had the more favorable change in the gross margin ratio over this 2-year period?

Question

The following information is for Barrel and its competitor Crate.
 $$\begin{array} { | l | l | l | l | l | } 
\hline & { \text { Barrel } } &&{ \text { Crate } } \
\hline & \underline { \text { Year 1 } } & \text { Year 2 } & \underline { \text { Year 1 } } & \text { Year 2 } \
\hline \text { Net sales } & \$ 347,850 & \$ 365.418 & \$ 579.750 & \$ 664,395 \
\hline \text { Cost of sales } & 121.747 & 146,167 & 318,862 & 312,265 \
& & & & \
\hline
\end{array}$$ Required:
1. Calculate the dollar amount of gross margin and the gross margin ratio to the nearest percent, for each company for both years.
2. Which company had the more favorable ratio for each year?
3. Which company had the more favorable change in the gross margin ratio over this 2-year period?

Quizplus · Accepted Answer

The Answer of The following information is for Barrel and its competitor Crate.
 $$\begin{array} { | l | l | l | l | l | } 
\hline & { \text { Barrel } } &&{ \text { Crate } } \
\hline & \underline { \text { Year 1 } } & \text { Year 2 } & \underline { \text { Year 1 } } & \text { Year 2 } \
\hline \text { Net sales } & \$ 347,850 & \$ 365.418 & \$ 579.750 & \$ 664,395 \
\hline \text { Cost of sales } & 121.747 & 146,167 & 318,862 & 312,265 \
& & & & \
\hline
\end{array}$$ Required:
1. Calculate the dollar amount of gross margin and the gross margin ratio to the nearest percent, for each company for both years.
2. Which company had the more favorable ratio for each year?
3. Which company had the more favorable change in the gross margin ratio over this 2-year period?

The Following Information Is for Barrel and Its Competitor Crate