Chapter 5, Problem 17Q

To determine

Gross profit: It represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

$\text{Gross profit}=\text{Net sales}–\text{Cost of goods sold}$

To Identify: The term used by Incorporation A for ‘gross profit’.

To Compute: The changes of gross margin of Incorporation A from 2013 to 2014.