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The management of Bataan corporation asked you to submit an analysis of the increase in their gross profit in 2021 based on their past two-year comparative income statements which shows: sales =2020 -1,000,000; 2012- 1,237,500. Cost of Sales= 2020- 800,000; 2021- 950,000. Gross profit =2020- 200,000; 2021 - 287,000. The only known factor given to you is the sales price increased 12.5% beginning January 2021. The increase in sales price caused an increase in gross profit by   a. 100,000 B. 137500 C. 110,000 D. None of these

The management of Bataan corporation asked you to submit an analysis of the increase in their gross profit in 2021 based on their past two-year comparative income statements which shows: sales =2020 -1,000,000; 2012- 1,237,500. Cost of Sales= 2020- 800,000; 2021- 950,000. Gross profit =2020- 200,000; 2021 - 287,000. The only known factor given to you is the sales price increased 12.5% beginning January 2021. The increase in sales price caused an increase in gross profit by   a. 100,000 B. 137500 C. 110,000 D. None of these

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The management of Bataan corporation asked you to submit an analysis of the increase in their gross profit in 2021 based on their past two-year comparative income statements which shows: sales =2020 -1,000,000; 2012- 1,237,500. Cost of Sales= 2020- 800,000; 2021- 950,000. Gross profit =2020- 200,000; 2021 - 287,000. The only known factor given to you is the sales price increased 12.5% beginning January 2021. The increase in sales price caused an increase in gross profit by

 

a. 100,000

B. 137500

C. 110,000

D. None of these

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