Are the firm’s gross and net margins increasing or decreasing?

 

 

The increase and decrease of the firm’s gross and net margin can be view in the tables below:

 

Year

Net sales

Gross profit/(loss)

Gross margin(%)

DECREASE / INCREASE

2002

61,529

20,457

33

Increase

2003

64,063

20,908

33

Increase

2004

60,144

14,309

24

Increase

 

 

Year

Net sales

Net income/(loss)

Net margin(%)

DECREASE / INCREASE

 

2002

61,529

(1,444)

(2)

Decrese

 

2003

64,063

7,310

11

Increase

 

2004

60,144

9,247

15

Increase

 

 

 

 

 

 

 

 

* Gross margin = gross profit/net sales*100

 

 

 

 

  Net margin = net income/net sales*100

 

 

 

 

 

 

(Taken from http://wps.prenhall.com/bp_laudon_mis_9/0,10571,2101577-,00.html

 

 

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