Chapter 19, Problem 2AA

To determine

Concept Introduction:

Gross Margin:

The gross margin can be defined as the difference between net sale and cost of goods sold. It is calculated by subtracting cost of sales from net sales.

  $\text{Gross Margin = Net Sales – Cost of Sales}$

Gross Margin Ratio:

The gross margin ratio can be defined as the ratio calculated by dividing gross margin with sales. It is calculated as under −

  $\text{Gross margin percentage = }\frac{\text{Gross Margin}}{\text{ Sales}}\text{ X 100}$

To compute:

Gross margin ratio for Apple for each of the fiscal years ended on September 30, 2017 and September 24, 2016

To determine

Concept Introduction:

Gross Margin:

The gross margin can be defined as the difference between net sale and cost of goods sold. It is calculated by subtracting cost of sales from net sales.

  $\text{Gross Margin = Net Sales – Cost of Sales}$

Gross Margin Ratio:

The gross margin ratio can be defined as the ratio calculated by dividing gross margin with sales. It is calculated as under −

  $\text{Gross margin percentage = }\frac{\text{Gross Margin}}{\text{ Sales}}\text{ X 100}$

To compute:

Gross margin ratio for Google for each of the fiscal years ended on December 31, 2017 and December 31, 2016

To determine

Concept Introduction:

Gross Margin:

The gross margin can be defined as the difference between net sale and cost of goods sold. It is calculated by subtracting cost of sales from net sales.

  $\text{Gross Margin = Net Sales – Cost of Sales}$

Which company earns more in gross margin for each dollar of net sales for the current year