Chapter 5, Problem 3BTN

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 the 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 and Google and Samsung