Response to the following problem:
Compute net sales, gross profit, and the gross margin ratio for each separate case a through d. Interpret the gross margin ratio for case a.
a b c d
Sales $130,000 $512,000 $35,700 $245,700
Sales discounts 4,200 16,500 400 3,500
Sales returns and allowances 17,000 5,000 5,000 700
Cost of goods sold 76,600 326,700 21,300 125,900