Pharoah Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Pharoahs ledger showed Cash of $7,500 and Common Stock of $7,500 May 1 2 5 9 10 11 12 15 Purchased merchandise on account from Black Wholesale Supply for $7,500, terms 1/10,n/30. Sold merchandise on account for $3.900, terms 2/10,/30. The cost of the merchandise sold was $2,800. Received credit from Black Wholesale Supply for merchandise returned $200. Received collections in full, less discounts, from customers billed on May 2. Paid Black Wholesale Supply in full less discount Purchased supplies for cash $900, Purchased merchandise for cash $2,600 Received $230 refund for return of poor quality merchandise from supplier on cash purchase. Purchased merchandise from Wilhelm Distributors for $2,000, terms 2/10, 1/30. Paid freight on May 17 purchase $250 Sold merchandise for cash $5.500. The cost of the merchandise sold was $4,100, Purchased merchandise from Clasps Inc for $800, terms 3/10.6/30, Paid Wilhelm Distributors in full less discount. Made refunds to cash customers for returned merchandise $118. The returned merchandise had cost $170. Sold merchandise on account for $1.280 terms n/30. The cost of the merchandise sold was $830. 17 19 24 25 27 29 31 Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,365.) (Round answers to 1 decimal place, es. 15.5%) % Profit margin % Gross profit rate