Answer:
Find my analysis below
Explanation:
The gross profit rate is the portion of net sales earned as gross profit prior to considering operating expenses as indicated by the formula below:
gross profit rate=gross profit/net sales
The profit margin measures the net income as a percentage of net sales
profit margin=net income/net sales
                                 Crane company	Sheridan company
Sales revenue                 $94,200  $103,000  
sales returns and allowance  $14,000  $3,000  
Net sales                           $80,200  $100,000  
cost of goods sold                  $54,200  $50,000  
Gross profit                               $26,000  $50,000  
Operating expenses            $14,700  $34,400  
Net income                            $11,300  $15,600  
  
Gross profit rate=gross profit /net sales	32.4%	50.0%
Profit margin=net income/net sales         14.1%	15.6%
 Crane company	Sheridan company
Sales revenue                 94200	=F5+F4
sales returns and allowance  =E3-E5	3000
Net sales                       80200	100000
cost of goods sold              54200	=F5-F7
Gross profit                       =E5-E6	50000
Operating expenses        14700	=F7-F9
Net income                            =E7-E8	15600
  
Gross profit rate=gross profit /net sales	=E7/E5	=F7/F5
Profit margin=net income/net sales	=E9/E5	=F9/F5