What is the gross profit ratio and sub receive

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Reference no: EM131202521

Parent company sells merchandise to Sub company for $10,000, the merchandise cost Parent company $7,000. Sub company sells the merchandise to an outside third party for $12,000. Parent company owns 80% of sub.

(a) What is the gross profit ratio?

(b) What profit does the parent receive?

Reference no: EM131202521

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