The gross margin or gross profit ratio is defined as gross profit divided by net sales. The ratio tells a company how much per each $1 of sales is available to cover remaining expenses and still produce a positive net income. For example, a company with a current gross profit of $10,000 and net sales of $20,000 has a gross margin ratio of 50%. This means that for every $1 of sales, the company has $.50 left to cover all of its other expenses and still produce a net income. If your company has a gross margin of 28% but your direct competitor has an industry-average gross margin of 42%, what changes would you make, if any, to your company