Below Are the Income Statements of Two Competitive Companies, Green

question 105

Essay

Below are the income statements of two competitive companies, Green Company and Black Company, for 2013. Required:
Based on the above statements, determine:
1) The gross margin percentage for each company
2) The net income percentage for each company
3) Which company is selling their products for lower prices (at a lower markup)?

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Definitions:

Malignant

Describes cells or tumors that are cancerous and can spread to other parts of the body.

Dedifferentiation

The process by which cells lose their specialized (differentiated) features and revert to a more primitive, unspecialized form.

Testicular Cancer

A type of cancer that originates in the testicles, the male reproductive glands located in the scrotum.

Palliative Effect

An approach to treatment aimed at relieving symptoms and improving the quality of life, without necessarily curing the disease.