Reference no: EM132553400
Case Study
Tup Marshall has presented the following graphs relating to its profitability for 2015 and 2016
Additional information:
Sales revenue was $100,000 in 2015 and $120,000 in 2016
Rent expense was $18,000 in each year
Total assets remain the same but the Debt Ratio (Total liabilities/Total Assets) decreased in 2016
Question a. Referring information provided, identify one reasons for the increase in Sales revenue in 2016
Question b. Refering to the graphs, explain why the rent expense segment (the green segment) is smaller in 2016
Question c. State whether wages expense (in dollar terms) would be higher, lower or the same in 2016. Justify your answer.
Question d. Explain why the Gross Margin would be lower in 2016
Question e. Discuss whether the profitability improved, worsen or remained the same in 2016
Attachment:- gross margin.zip