Pentex and Marbro, small companies in the stationery business, each had a dollar gross margin of $20,000, during September 2004. Pentex's September sales were twice that of Marbro's. If Pentex's gross margin as a percentage of sales for September was 10%, what was Marbro's gross Margin as a percentage of sales for the same period?

Five Percent .

I'm having some difficulty with the above question as well. Unfortunately, the answer is not 5% as is listed above. I believe the answer is 20%, however I am unsure. Any input would be appreciated.

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Originally Posted by Dog1937

I'm having some difficulty with the above question as well. Unfortunately, the answer is not 5% as is listed above. I believe the answer is 20%, however I am unsure. Any input would be appreciated.

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It must be 10% in the absence of data for sales and cost of sales. If one company's sales are twice that of the other, it does not necessarily mean that the gross margin rate will be half of the first one.