Key comparative figures ($ thousands) for both Krispy Kreme and Tastykake follow:

Required 1. Compute the dollar amount of gross margin and the gross margin ratio for the two years shown for both companies.
2. Which company earns more in gross margin for each dollar of net sales?
3. Did the gross margin ratio improve or decline for these companies?

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Key Figures Revenues (net sales) *** Cost of sales Krispy Kreme Tastykake Current Year Prior Year Current Year Prior Year $491,549 381,489 $394,354 316,946 $162,263 $166,245 111,187 103,297