Gross Margin Industry Percentage Cost of Sales 742,567 318,222 159,293 Averages Sales $ 1,086,800 $ 468,200 212,222 New Course Books Used Course Books Custom Published Books Textbook Rental Sales Course Technology Trade Books 25.4 32.6 25.6 102,323 90,600 68,400 22,330 $ 2,050,875 $1,446,393 823,578 $ 612,233 $ 2,874,453 $2,058,626 90,323 80,432 40,356 15,200 22.1 11.2 24.3 31.0 26.5 Professional Reference Books Total Book Sales Total Non-Book Sales 29.7 Total Net Sales 28.3 a. Calculate the gross margin percentage for each of State University's product lines. b. Compare State University's gross margins to industry averages. Indicate any margins that appear out of line, in relation to the industry.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Gross Margin Industry
Averages
25.4
Cost of
Sales
Sales
Percentage
New Course Books
Used Course Books
Custom Published Books
$ 1,086,800 $
468,200
212,222
102,323
90,600
68,400
22,330
2,050,875 $1,446,393
823,578 $
$ 2,874,453 $2,058,626
742,567
318,222
159,293
90,323
80,432
40,356
15,200
32.6
25.6
Textbook Rental Sales
Course Technology
Trade Books
Professional Reference Books
22.1
11.2
24.3
Total Book Sales
Total Non-Book Sales
Total Net Sales
31.0
26.5
29.7
28.3
$
612,233
a. Calculate the gross margin percentage for each of State University's product lines.
b. Compare State University's gross margins to industry averages. Indicate any margins that appear out of line, in relation to the
industry.
Transcribed Image Text:Gross Margin Industry Averages 25.4 Cost of Sales Sales Percentage New Course Books Used Course Books Custom Published Books $ 1,086,800 $ 468,200 212,222 102,323 90,600 68,400 22,330 2,050,875 $1,446,393 823,578 $ $ 2,874,453 $2,058,626 742,567 318,222 159,293 90,323 80,432 40,356 15,200 32.6 25.6 Textbook Rental Sales Course Technology Trade Books Professional Reference Books 22.1 11.2 24.3 Total Book Sales Total Non-Book Sales Total Net Sales 31.0 26.5 29.7 28.3 $ 612,233 a. Calculate the gross margin percentage for each of State University's product lines. b. Compare State University's gross margins to industry averages. Indicate any margins that appear out of line, in relation to the industry.
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