According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Charger Equipment for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 38,800 2018 $ 109,000 64,500 44,500 2017 $ 133,500 75,100 58,400 36,900 590 7,018 1,500 $ 5,518 $ 13,180 528 19,080 5,980 Required: 1. Compute the gross profit percentage for each year. Assuming that the change from 2017 to 2018 is the beginning of a sustained trend, is Charger likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Given your calculations here and in requirement 1, explain whether Ziggo did a better or worse job of controlling operating expenses in 2018 relative to 2017. 3. Charger reported average net fixed assets of $55,100 in 2018 and $46,000 in 2017. Compute the fixed asset turnover ratios for both years. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017? 4. Charger reported average stockholders' equity of $54,900 in 2018 and $41,700 in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2018 than in 2017? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 3-a. Charger reported average net fixed assets of $55,100 in 2018 and $46,000 in 2017. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal place.) 3-b. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017? 3-a. 2017 3-a. 2018 3-b. Investment better utilized? < Required 2 Required 4 > 4. Charger reported average stockholders' equity of $54,900 in 2018 and $41,700 in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2018 than in 2017? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 4-a. Charger reported average stockholders' equity of $54,900 in 2018 and $41,700 in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place.) 4-b. Did the company generate greater returns for stockholders in 2018 than in 2017? 4-a. 2017 4-a. 2018 4-b. Greater returns generated in 2018? % < Required S Required 4 >