**Assume that in 2018 $300 of COGS was Variable and $200 was fixed. Assuming revenue growth was driven by 5% volume and 2% price in 2019, what is the gross profit in 2019? Show your work. Assuming revenue growth in 2020 was driven by 4% volume growth and 1% price increase, what would be gross profit in 2020? Show your work.
**Assume that in 2018 $300 of COGS was Variable and $200 was fixed. Assuming revenue growth was driven by 5% volume and 2% price in 2019, what is the gross profit in 2019? Show your work. Assuming revenue growth in 2020 was driven by 4% volume growth and 1% price increase, what would be gross profit in 2020? Show your work.
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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2018 2019 2020
Revenue 800 856 899
COGS 500
Gross Profit 300
**Assume that in 2018 $300 of COGS was Variable and $200 was fixed.
Assuming revenue growth was driven by 5% volume and 2% price in 2019, what is the gross profit in 2019? Show your work.
Assuming revenue growth in 2020 was driven by 4% volume growth and 1% price increase, what would be gross profit in 2020? Show your work.
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