Key comparative figures for both Polaris and Arctic Cat follow.

Required
1. Compute the dollar amount of gross margin and the gross margin ratio for the two years shown for each of these companies.
2. Which company earns more in gross margin for each dollar of net sales? How do they compare to the industry average of 25.0%?
3. Did the gross margin ratio improve or decline for thesecompanies?

Transcribed Image Text:

Polaris Arctic Cat Current Year Prior Year Current Year Prior Year ($ thousands) Net sales... . $2,656,949 $1,99,139 $464,65 $450,728 Cost of sales...916,366 ,460,926 363,142 367492