Compute net sales, gross profit, and the gross margin ratio for each separate case a through

d. Interpret the gross margin ratio for case a.

a b c d Sales . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 $550,000 $38,700 $255,700 Sales discounts . . . . . . . . . . . . . . . . . 5,200 17,500 600 4,200 Sales returns and allowances . . . . . . . 20,000 6,000 5,300 900 Cost of goods sold . . . . . . . . . . . . . . 79,600 329,700 24,300 126,900