Calculate the Gross Margin Ratio for Each of the Following

question 52

Essay

Calculate the gross margin ratio for each of the following separate cases A through D:
$\begin{array}{|l|r|r|r|r|}\hline &{\text { A }} &{\text { B }} &{\text { C }} &{\text { D }} \\\hline \text { Net sales } & \$ 135,000 & \$ 623,500 & \$ 37,800 & \$ 259,600 \\\hline \text { Cost of goods sold } & 83,600 & 249,200 & 13,230 & 127,204 \\\hline\end{array}$

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Definitions:

Decrease in Demand

refers to a situation where consumers' desire and ability to purchase a product or service diminishes, leading to a downward shift in the demand curve.

Short Run

A time period in economics during which at least one input (such as plant size) is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing full adjustment to changes.

Average-Total-Cost Curve

A graphical representation in economics that shows how the average total cost of production changes as the quantity of output is altered.