Companies with low gross profit and markup percent's often have higher volumes of sales than companies with high gross profit and markup percent's.

1. Comment on the preceding statement.

2. The following data (in millions) were adapted from recent financial statements of The Kroger Co. (KR) and Tiffany & Co. (TIF) Kroger operates supermarkets, while Tiffany designs and sells jewelry, china, watches, and other expensive merchandise.

Compute the gross profit percent and average markup percent for Kroger and Tiffany. Round to one decimal place.

3. Comment on the results in part (2).

Transcribed Image Text:

Kroger Tiffany Sales $115,337 $4,105 Cost of goods sold Gross profit (89,502) $ 25,835 (1,614) $2,491