Answer the following questions by referring to the financial statements of Leon’s Furniture Limited and Shoppers Drug Mart Corporation, in Appendixes B and C:
1. Do you expect the gross margin of each company to be the same?
2. What is the gross margin for each company?
3. The gross margins for Leon’s and Shoppers are much lower than the gross margin for Le Chateau, as noted on page 261. Explain the difference.