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Arlington Merchants reported the following on its income statement for the fiscal years ended December 31, 2020 and 2019.
| | | 2020 | | 2019 |
| Sales | | | $4,853,000 | | | | $4,753,000 | |
| Cost of goods sold | | | 3,266,069 | | | | 3,203,522 | |
| Gross profit | | | 1,586,931 | | | | 1,549,478 | |
| Operating expenses | | | 878,393 | | | | 893,564 | |
| Profit | | | $708,538 | | | | $655,914 | |
Calculate the gross profit margin for Arlington for 2019 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.)
| | | Gross profit margin |
| 2020 | | % |
| 2019 | | % |
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Calculate the profit margin for Arlington for 2019 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.)
| | | Profit margin |
| 2020 | | % |
| 2019 | | % |
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For each ratio calculated in (a) and (b) above, comment if the ratio has improved or deteriorated from 2019 to 2020.
| The gross profit margin has improveddeteriorated from 2019 to 2020. |
| The profit margin has improveddeteriorated from 2019 to 2020. |
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