What is the gross profit declined due to increase in cost in the amount?The management of Bataan Corporation ask you to submit ananalysis of the increase in their gross profit in2021 based on theirpast two-year comparative income statements which show:20212020Sales1,237,500 1,000,000950,000287,000Cost of sales800,000Gross profit200,000The only known factor given is the sales price increased 12.5% beginning January 2021.

Increase in gross profit = Change in profit / Base gross profit

Answered: 020 000 000 000

Business

Accounting

020 000 000 000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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Question

What is the gross profit declined due to increase in cost in the amount?
The management of Bataan Corporation ask you to submit an
analysis of the increase in their gross profit in2021 based on their
past two-year comparative income statements which show:
2021
2020
Sales
1,237,500 1,000,000
950,000
287,000
Cost of sales
800,000
Gross profit
200,000
The only known factor given is the sales price increased 12.5% beginning January 2021.

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