Required 1. Compute the amount of gross margin and the gross margin ratio for the two...

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Required 1. Compute the amount of gross margin and the gross margin ratio for the two years shown for each of these companies

business accounting

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[1]

	Apple		Google
	Current	Prior	Current	Prior
Net Sales - A	$229,234	$215,639	$110,855	$90,272
Cost of Sales - B	$141,048	$131,376	$45,583	$35,138
Gross margin- C = A - B	$88,186	$84,263	$65,272	$55,134
Gross margin ratio - D = (C/A) x 100	38.5%	39.1%	58.9%	61.1%

[2] Google earns more gross margin.
[3a] Outperfoms, as GP % is more than 35%
[3b] Outforms as well.
[4a] Unfavourable trend, as GP% decreased in current year.
[4b] Unfavorurable trend as GP% is decreasing.

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