Toy World operates more than 1,500 stores in the United States company\'s income

Question

Toy World operates more than 1,500 stores in the United States company's income statement (in millions): E (Click the icon to view th income statement ilmnatn) and abroad Like most retailers, the managers of Toy World monitor the company's gross margin peroentage. The following information is from the Requirement 1. Compute the gross profit percentage for each of the 3 years. Comment on the changes in gross profit percentage Begin by identitying the formula, then compute the gross profit percentage for each of the three years beginning with 2010. (Round your answers to two decimal places Cx.3X0x · Gross profit percentage 2010 2011 2012 million milion million million The gross proft percentage Data Table For the Year Ended January 20, 2912 January 29, 2011 January 30, 2010 13,30013.200 13,500 8,580 Sales 8512 9,045

Explanation / Answer

Gross profit = Sales - Cost of goods sold

Gross profit ( 2012) = 13300 - 8512 = 4788

Gross profit (2011) = 13200- 8580 = 4620

Gross profit ( 2010) =13500- 9045 = 4455

Gross Profit / Sales = Gross profit percentage

2010 = 4455 / 13500 = 0.33 or 33%

2011 = 4620 / 13200 = 0.35 or 35%

2012 = 4788 / 13300 = 0.36 or 36%

The gross profit percentage increases

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