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 Cost of sales 950,000 800,000 Gross profit 287,000 200,000 The only known factor given is the sales price increased 12.5% beginning January 2021.
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 Cost of sales 950,000 800,000 Gross profit 287,000 200,000 The only known factor given is the sales price increased 12.5% beginning January 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the increase in gross profit due to increase in volume?
![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
Cost of sales
950,000
800,000
Gross profit
287,000
200,000
The only known factor given is the sales price increased 12.5% beginning January 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea25641b-5006-40a1-8f45-d3af7b2ae624%2F434a29e4-927c-40ea-b108-82cfaca7a043%2Fizrp59_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Cost of sales
950,000
800,000
Gross profit
287,000
200,000
The only known factor given is the sales price increased 12.5% beginning January 2021.
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