1. A company had the following results last period. What is the gross margin (%) for the period?

2. A company had the following results last period. What is the expense ratio (%) for the period?

3. A company had the following results last period. What is the return on sales (%) for the period?

4. If unit cost is $35, but all other information in Table 1 stays the same, which of the three key measures does not change: gross margin, expense ratio, or return on sales?

5. If unit cost is $40, what is the return on sales (%) if 2 sales people are added and sales increase by 20,000 units (assume other information in Table 1 stays the same)?

Table 1 Income Statement Data Units sold Unit cost Price Advertising Consumer promotion Personal selling Dealer promotions Product development 150,000 $40.00 $90.00 $1,200,000 $1,600,000 5 salespeople @ $80,000 eaclh $1,300,000 $900,000