Johnson \& Johnson is a worldwide manufacturer of health care products, including Band-Aid bandages and Mylanta antacid. It reported the following results for three recent years:

Assume that similar-sized companies in the same basic industries have experienced an average gross profit percentage of 65 percent each year.
Required

a. Calculate the gross profit percentage for Johnson \& Johnson for the three years.

b. Compare the three-year trend in gross profit percentage for Johnson \& Johnson to the assumed industry average. Analyze the trend and evaluate the performance of Johnson \& Johnson compared to the assumed industry average.

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(in millions) 2017 2016 2015 Net sales.. $76,450 $71,890 $70,074 Cost of goods sold 25,354 21,685 21,536