Pentex and Marbro, small companies in the stationery business, each had a dollar gross margin of $20,000 during September 2014. Pentex's September sales were twice that of Marbro's. If Pentex's gross margin as a percentage of sales for September was 10%, Marbro's gross margin as a percentage of sales for the same period was: a. 10% b. 5% c. 20% d. Cannot be calculated.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Pentex and Marbro, small companies in the stationery business, each
had a dollar gross margin of $20,000 during September 2014. Pentex's
September sales were twice that of Marbro's. If Pentex's gross margin
as a percentage of sales for September was 10%, Marbro's gross
margin as a percentage of sales for the same period was:
a. 10%
b. 5%
c. 20%
d. Cannot be calculated.
Transcribed Image Text:Pentex and Marbro, small companies in the stationery business, each had a dollar gross margin of $20,000 during September 2014. Pentex's September sales were twice that of Marbro's. If Pentex's gross margin as a percentage of sales for September was 10%, Marbro's gross margin as a percentage of sales for the same period was: a. 10% b. 5% c. 20% d. Cannot be calculated.
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