Warren Cook, CPA, is auditing the State University Bookstore and has obtained the following summary of revenues and cost of sales from the client€™s computer.

a. Calculate the gross margin for each of State University€™s product lines.
b. Compare State University€™s gross margins to those presented by the National Association of College Stores. Indicate any margins that appear out of line, in relation to the industry.
The association statistics may be obtained at the following Internet address: www.nacs.org, under the Researchtab.

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Used SchoolInsignia New Trade Course Books Course Books Books Office Supplies Apparel Other $45,300 $34,200 27,633 20,178 Sales Cost of sales $543,400 396,682 $234,100 $45,500 27,300 $63,400 42,893 154,974