Worden Corporation has the following income statement for the year:

Required:
a. Calculate
(1) Gross margin (in dollars).
(2) Gross margin percentage.
(3) Profit margin percentage.
b. Interpret the results of the above calculations.

Transcribed Image Text:

Income Statement For the Year Ended December 31 Sales revenues Expenses: $85,000 Cost of goods sold Selling and administrative expenses Income taxes $45,000 25,000 6,000 576,000 9,000 Total expenses Net Income