Question

A company reported a decrease in sales revenue from $860,000 last year to $760,000 this year and a decrease in gross profit from $400,000 last year to $360,000 this year.

Required:

Part a. Calculate the gross profit percentages for both years.

Part b. Was the change in gross profit caused by the change in sales volume, the change in the gross profit per sale, or a combination of the two? Explain.

Answer

This answer is hidden. It contains 604 characters.