Compute net sales gross profit and the gross margin ratio

Question

Question: 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