$($LO $4,5)($Determine missing amounts and calculate profitability ratios.$)$ Statement of income information is presented here for two companies:

Sales

Cost of goods sold

Gross profit

Operating expenses

Income from operations

Other income

Other expenses

Income before income tax

Income tax expense

Net income

Marchant Ltd$.$

CA

$[1]$

$657,000$

$775,000$

$580,000$

$[2]$

$3,600$

Dueck Ltd$.$

$$2,130,000$

$1,172,000$

$[5]$

$[6]$

$310,000$

$[3]$

$38,600$

$4,100$

$[7]$

$[8]$

$250,900$

Instructions

a$.$ Calculate the missing amounts for items $[1]$ to $[8].$

b$.$ Calculate the gross profit margin and profit margin for each company.

c$.$ Identify which company had the better gross profit margin and profit margin.