presented are the income statements of rira and tir na nog distillery companies for the current year: rira tir na nog net sales revenue $487,000 100.00% $500,000 100.00% cogs 400,300 82.20% 395,000 79.00% gross profit 86,700 17.80% 105,000 21.00% selling/general expenses 20,200 4.15% 50,000 10.00% income from operations 66,500 13.66% 55,000 11.00% income tax expense 17,100 3.51% 16,500 3.30% net income $49,400 10.14% $38,500 7.70% which company has the better relationship between gross profit and net sales revenue?

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anthougo anthougo · Answer 1 · 2022-12-19T23:00:09+01:00

The company that has a better relationship between its gross profit and net sales revenue is Nanog Distilleries with a gross margin of 21%.

The gross margin is the ratio of the gross profit to the net sales revenue.

The gross margin is computed as the quotient resulting from the division of the gross profit by the net sales.

The result is expressed as a percentage by multiplying by 100.

Riratir Nanog

Net sales revenue $487,000 100.00% $500,000 100.00%

COGS 400,300 82.20% 395,000 79.00%

Gross profit 86,70 17.80% 105,000 21.00%

Selling/general expenses 20,200 4.15% 50,000 10.00%

Income from operations 66,500 13.66% 55,000 11.00%

Income tax expense 17,100 3.51% 16,500 3.30%

Net income $49,400 10.14% $38,500 7.70%

Thus, Nanog had a better relationship with its gross margin than with the net margin.

Learn more about the gross margin at https://brainly.com/question/8189926

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