Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. Interpret the gross margin ratio for Carrier. Carrler Lennox Trane York Sales $150,000 $550,000 $38,700 $255,700 Sales discounts 5,000 17,500 боо 4,800 Sales returns and allowances 6,000 ооб 24,453 126,500 20,000 5,100 Cost of goods sold 79,750 329,589
Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. Interpret the gross margin ratio for Carrier. Carrler Lennox Trane York Sales $150,000 $550,000 $38,700 $255,700 Sales discounts 5,000 17,500 боо 4,800 Sales returns and allowances 6,000 ооб 24,453 126,500 20,000 5,100 Cost of goods sold 79,750 329,589
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:QS 5-15 Computing and analyzing gross margin ratio e A2 O
Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies.
Interpret the gross margin ratio for Carrier.
Carrier
Lennox
Trane
York
Sales
$150,000 $550,000 $38,700 $255,700
Sales discounts
5,000
17,500
бо0
4,800
Sales returns and allowances
20,000
6,000
5,100
900
Cost of goods sold
79,750
329,589
24,453
126,500
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