**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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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