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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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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