The following information was drawn from the annual reports of two companies. Company X Company Y Sales revenue $1,500 $2,500 Cost of goods sold (900) (1,400) Gross margin 600 1,100 Operating expenses (300) (800) Operating income 300 300 Gain on sale of equipment 100 0 $400 $300 Net income Based on this information, Company X's gross margin percentage is: a. 70% b. 50% c. 40% d. 60%

The following information was drawn from the annual reports of two companies. Company X Company Y Sales revenue $1,500 $2,500 Cost of goods sold (900) (1,400) Gross margin 600 1,100 Operating expenses (300) (800) Operating income 300 300 Gain on sale of equipment 100 0 $400 $300 Net income Based on this information, Company X's gross margin percentage is: a. 70% b. 50% c. 40% d. 60%

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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