a. Using the information from Practice Exercise 5-7, calculate the gross margin percentage.
In Exercise
Rental revenue ........... $ 3,600
Purchase discounts ........... 2,987
Sales ............... 672,121
Cost of goods sold .......... 314,434
Sales discounts .......... 2,732
Sales returns and allowances ..... 3,212
b. If the previous year’s gross margin was 60%, has this company’s gross margin improved or declined?