Gross Margin IndustryAverages25.4Cost ofSalesSalesPercentageNew Course BooksUsed Course BooksCustom Published Books$ 1,086,800 $468,200212,222102,32390,60068,40022,3302,050,875 $1,446,393823,578 $$ 2,874,453 $2,058,626742,567318,222159,29390,32380,43240,35615,20032.625.6Textbook Rental SalesCourse TechnologyTrade BooksProfessional Reference Books22.111.224.3Total Book SalesTotal Non-Book SalesTotal Net Sales31.026.529.728.3$612,233a. 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 theindustry.

Solution: Introduction: Cost of goods sold means the cost of inventory or direct price related to…

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.

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

Problem 1Q

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