The average price of a gallon of gas in $2018$ increased $$0\mathrm{.}30(12\mathrm{.}4$ percent$)$ from $$2\mathrm{.}42$ in $2017$ to $$2\mathrm{.}72$ in $2018.$ Let's see whether

these changes are reflected in the income statement of Fawkes Manufacturing for the year ended December $31,2018($amounts in

billions$).$

Required:

Compute the gross profit percentage for each year. Assuming the change from $2017$ to $2018$ is the beginning of a sustained trend,

is Fawkes likely to earn more or less gross profit from each dollar of sales in $2019?$

Compute the net profit margin for each year. Did Fawkes do a better or worse job of controlling expenses other than the costs of

crude oil and products in $2018$ relative to $2017?$

Fawkes reported average net fixed assets of $$370$ billion in $2018$ and $$368$ billion 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 $2017?$

Fawkes reported average stockholders' equity of $$180$ billion in $2018$ and $$176$ billion 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

$2018$ or $2017?$

Complete this question by entering your answers in the tabs below.

$1-$a$.$ Compute the gross profit percentage for each year.

Note: Round percentage values to $1$ decimal place.

$1-$b$.$ Assuming the change from $2017$ to $2018$ is the beginning of a sustained trend, is Fawkes likely to earn more or less gross

profit from each dollar of sales in $2019?$