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In fiscal year 2011, Starbucks Corporation (SBUX) had revenue of $11

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In fiscal year 2011, Starbucks Corporation (SBUX) had revenue of $11.70 billion, gross profit of $6.75 billion, and net income of $1.25 billion. Peet’s Coffee and Tea (PEET) had revenue of $372 million, gross profit of $72.7 million, and net income of $17.8 million.

• a. Compare the gross margins for Starbucks and Peet’s.
• b. Compare the net profit margins for Starbucks and Peet’s.
• c. Which firm was more profitable in 2011?

Given information:  SBUX             PEET

Revenue              $11,700,000,000                Revenue              $372,000,000

Gross profit        $6,750,000,000 Gross profit        $72,700,000

Net income        $1,250,000,000 Net income        $17,800,000