Rachel Rose, Inc. reported the following in its 2017 and 2016 income statements. 2017 2016 Net sales

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Rachel Rose, Inc. reported the following in its 2017 and 2016 income statements.

2017 2016 Net sales $90,000 $130,000 Cost of goods sold 50,000 70,000 Operating expenses 14,000 28,000 Income tax expense 8,000 12,000 Net income $18,000 $ 20,000

a) Determine the company’s gross profit rate?

b) Determine the company’s profit margin?

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Accounting Tools for Business Decision Making

ISBN: 978-1118096895

6th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Posted Date: Sep 28, 2022 02:46 AM

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Rachel Rose, Inc. reported the following in its 2017 and 2016 income statements. 2017 2016 Net sales

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