Your comparison of the gross margin percent for Jigan Drugs for the years 2016 through 2019 indicates a significant decline. This is shown by the following information (Click the icon to view the data and additional discussion with the controller.) The following additional information is obtained from independent sources controller's explanations Click the icon to view the additional information) Read the requirements CHD Requirement a. Evaluate the explanation provided by Amberson Show calculations to support your conclusions Begin by compus the gross margin percentage for drug and nondrug sales for 2019 through 2016 (Round your answers to the nearest tenth percent, XXX%) Gross margin % Drug sales Gross margin % Nondrug sales Year 2019 2018 2017 2016 mation provided by n percentage for ss margin %. ondrug sales Data table 2019 2018 2017 2016 % Sales (thousands) $ 14.325 $ CGS (thousands) 9,125 12,925 8,143 $ 11,475 $ 10,500 7.195 6,562 Gross margin: Percent $ 5,200 $ 4,782 $ 4,280 $ 3,938 36.3 37.0 37.3 37.5 A discussion with Mary Amberson, 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. Amberson feels strongly that these two factors are the cause of the decline Print Done - X the explanation provided by gross margin p %. Gross More info Nond Jiligan Drugs (S in thousands) Drug Sales Nondrug Sales Drug Cost of Goods Sold Nondrug Cost of Goods Sold Industry Gross Profit Percent for Retailers of Drugs and Related Products 2019 $ 5,537 S 8.788 3,250 $ 5.835 338 2018 5.396 7.529 3,092 4.999 33.9 2017 5:118 6.357 2.948 4,234 342 2016 4.935 5.565) 2.820 3723 34.4 Print Done