Gross Margin Comparison
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Practice 21-4 Gross Margin Comparison
Which of the following companies performed better during the period based on gross margin alone?
Com. A Com. B
Beginning total assets $ 183,000 $ 92,000
Ending total assets 192,000 95,000
Cost of goods sold 1,360,000 420,000
Revenue 1,840,000 870,000
Problem 21-5 Return on Investment Comparison
Refer to the data in Practice 21-4 (See below). Based on DuPont's return on investment (ROI) formula, which company performed better during the period?
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This solution is comprised of a detailed calculation, including all the requisite steps, to determine ROI of a company in the given business finance problem.
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Based on gross margin, Company A performs better than Company B because its gross margin is higher by 30,000.
Problem 21-5 Return on ...
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