Westlawn Company discloses the following for the year ended May 31, 2014:
Sales discounts 5,900
Sales returns 1 3,000
Gross profit from sales 124,000
Net loss 28,000
(a) Net sales,
(b) Total operating expenses,
(c) Cost of goods sold,
(d) Gross profit ratio (round to two decimal places).
Refer to your answer in part (d). Westlawn experienced a gross profit ratio for the year ended May 31, 2013, of 23%. Is the change in the ratio favourable or unfavourable?