Calculating operating margins and realized holding gains. British Petroleum Company (BP) uses a FIFO cost flow assumption. Data from BP's financial statements for four years appear below (in million of British pounds).

a. Compute the amount of the operating margin, the realized holding gain, and the gross margin for each of the four years.

b. Compute the operating margin to sales percentage and the gross margin to sales percentage for each of the four years.

c. Why might BP voluntarily disclose information about the current replacement cost of goods sold?

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Year 8 Year 9 Year 10 Year 11 Sales... 25,922 29,641 33,039 32,613 Cost of Goods Sold Based on: Acquisition Cost .... 19,562 21,705 24,178 25,746 Current Replacement Cost 19,330 22,095 24,655 25,117