Key comparative figures for Apple and Google follow.

Required1. Compute the 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 for the current year?3. Do (a) Apple?s and (b) Google?s current-year gross margins under perform or outperform the industry (assumed) average of 35.0%?4. Are (a) Apple?s and (b) Google?s current-year gross margins on a favorable or unfavorable trend?

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Apple Google Prior Year $ millions Current Year Prior Year Current Year Net sales ... Cost of sales... $229,234 141,048 $215,639 $90,272 35,138 $110,855 45,583 131,376