Key comparative figures for Apple and Google 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 45.0%?
3. Did the gross margin ratio improve or decline for these companies?

Apple Google $ millions Net sales Cost of sales Current Year Prior Year $182,795 112,258 Current Year $74,989 28,164 Prior Year $233,715 140,089 $66,001 25,691