Amounts from Toy World's income statement are presented below.

	2020
Sales	$5,500,000
Income tax expense	340,000
General and administrative expenses	520,000
Cost of goods sold	1,750,000
Selling expenses	380,000

Amounts from Toy World's income statement are presented below.

	2020
Sales	$5,500,000
Income tax expense	340,000
General and administrative expenses	520,000
Cost of goods sold	1,750,000
Selling expenses	380,000

1. Compute Toy World's Gross Profit. $________

Required Computation:

2. Compute Toy World's gross profit ratio. __________%

(Round to the nearest tenth of 1 percent)

Required Computation:

3. Compute Toy's World Net Income $_________

Required Computation:

4. Compute Toy's World Profit Margin

(Round to the nearest tenth on 1 percent) __________%

Required Computation:

5. Evaluate the profitability of Toy World: