Companies with low gross profit and markup percents often have high ratios of sales to assets. Conversely, companies with high gross profit and markup percents often have low ratios of sales to assets.
1. Comment on the preceding statements.
2. The following data (in millions) were adapted from recent financial statements of The Kroger Co. and Tiffany & Co. Kroger operates supermarkets, while Tiffany designs and sells jewelry, china, watches, and other expensive merchandise.

Compute the gross profit percent, average markup percent, and ratio of sales to assets for Kroger and Tiffany. Round the gross profit percent and average markup percent to one decimal place. Round the ratio of sales to asset to two decimal places.
3. Comment on the results in part(2).

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Net sales Cost of merchandise sold Gross proft Average total assets Kroger Tiffany $90,374 $3,643 71,494 1,492 $18,880 $2,151 $23,49 $3,948