Question

The data provided here is of Stevenson Company. The tax rate is 30%. From this data, compute the gross margin percentage, net profit margin percentage, the return on total assets, and return on equity for the year 2016. (Data provided in attachment)

Answer 1

The gross profit P is the difference between the cost to make a product C and the selling price or revenue R.

P = R - C

The mark up percentage M is the profit P divided by the cost C to make the product.

M = P / C = ( R - C ) / C

The gross margin percentage G is the profit P divided by the selling price or revenue R.

G = P / R = ( R - C ) / R

HOPE THIS HELPS!!!!! :)

<3333333333