Apple’s and Google’s income statements in Appendix A both show increasing sales and cost of sales. Thegross margin ratio can be used to analyze how well companies control costs as sales increase.
Required
1. Compute the gross margin ratio for Apple for each of the fiscal years ended September 30, 2017, and September 24, 2016.
2. Compute the gross margin ratio for Google for each of the fiscal years ended December 31, 2017, and December 31, 2016.
3. Which company (Apple, Google, or neither) improved its control of costs during 2017, as reflected in the gross margin ratio?
Data from Apple’s
Data from Google’s
