The following income statements were drawn from the annual reports of the denver company and the reno company: denver* reno* net sales $ 33,200 $ 86,900 cost of goods sold (15,440 ) (63,050 ) gross margin 17,760 23,850 less: operating exp. selling and admin. exp. (11,760 ) (15,348 ) net income $ 6,000 $ 8,502 *all figures are reported in thousands of dollars. required a-1. compute the gross margin percentages and return-on-sales ratios of denver and reno. (round your answers to the nearest whole number.)

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

2. Return on sales ratio:

For Denver and the Reno is 18% and 10%

Explanation:

1. The formula to compute the gross margin percentage is shown below:

Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver  = ($17,760 ÷ $33,200) × 100 = 53%

For Reno = ($23,850 ÷ $86,900) × 100 = 27%

2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

For Denver  = ($6,000 ÷ $33,200) × 100 = 18%

For Reno = ($8,502 ÷ $86,900) × 100 = 10%

answer; ///after donning a gown, mask and eyewear;

it's obviously d. it could be c though.