Key comparative figures for both Apple and Google follow.

Required
1. Compute the dollar amount of gross margin and the gross margin ratio for the two years shown for each of these companies.
2. Which company earns more in gross margin for each dollar of net sales? How do they compare to the industry average of 45.0%?
3. Did the gross margin ratio improve or decline for these companies?

Transcribed Image Text:

Apple Google Current Year Prior Year Current Year Prior Year (S millions) Net sales.$170,910 Cost of sales. . $156,508 $59,825$50,175 106,606 87846 25,858 20,634