Loblaw Companies Limited reported the following items in its consolidated statement of earnings (in millions of dollars) for 2014 and 2013.

20142013

Revenue.........................$42,611...............$32,371

Cost of goods sold..............32,063.................24,701

Net earnings...........................53.....................627

(a) Calculate the (1) gross profit margin and (2) profit margin.

(b) What conclusions concerning the gross profit and profit margin can be drawn?