i More Info Johnson Drugs ($ in thousands) Industry Gross Profit Percent for Retailers of Drugs and Related Products Drug Cost of Goods Sold Nondrug Cost of Goods Sold Drug Sales Nondrug Sales 2019 5,212 $ 9,088 $ 3,409 $ 6,216 33.5 2018 5,188 7,912 3,300 5,412 33.7 2017 4,918 6,682 3,133 4,584 33.9 2016 4,860 5,940 3,081 4,081 34.0 Print Done P8-31 (similar to) Question Help Your comparison of the gross margin percent for Johnson Drugs for the years 2016 through 2019 indicates a significant decline. This is shown by the following information: (Click the icon to view The following additional information obtained from independent sources and the client's records as a means of investigating the controller's explanations: ion.) Data Table Requirement a. Evaluate th 2019 2018 2017 2016 th percent, XX.X%.) Begin by computing the gro Gross margin % Year Drug sales $ $ $ 11,600 $ Sales (thousands) CGS (thousands) 14,300 9,138 13,100 8,253 10,800 6,750 7,273 2019 Gross margin $ 5,162 $ 4,847 4,327 $ 4,050 2018 % Percent 36.1 37.0 37.3 37.5 2017 % 2016 % A discussion with Madeline Amrock, the controller, brings to light two possible explanations. She informs you that the industry gross profit percent in the retail drug industry declined fairly steadily for three years, which accounts for part of the decline. A second factor was the declining percent of the total volume resulting from the pharmacy part of the business. The pharmacy sales represent the most profitable portion of the business, yet the competition from discount drugstores prevents it from expanding as fast as the nondrug items such as magazines, candy, and many other items sold. Amrock feels strongly that these two factors are the cause of the decline. Enter any number in the ed ? Print Done parts remaining Check