Compute Ashley's gross profit percentage and return on sales ratio. Explain what each ratio tells us
about Ashley's performance. Ashley is planning to add a new product and expects net sales to be $32,000
and cost of goods to be $26,000. No other income or expenses are expected to change. How will this
affect Ashley's gross profit percentage and return on sales ratio? What do you advise regarding the
new product offering?
the gross profit intitally is of 43.33% which is good to bear the later operating expenses on the firm. On the... View the full answer