From last year to this year, Berry Barn reported that itsNet Sales increased from $300,000 to $400,000 and itsGross Profit increased from $90,000 to $130,000. Was theGross Profit increase caused by ( a ) an increase in salesvolume only, ( b ) an increase in gross profit per sale only,or ( c ) a combination of both? Explain your answer.
From last year to this year, Berry Barn reported that itsNet Sales increased from $300,000 to $400,000 and itsGross Profit increased from $90,000 to $130,000. Was theGross Profit increase caused by ( a ) an increase in salesvolume only, ( b ) an increase in gross profit per sale only,or ( c ) a combination of both? Explain your answer.
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 6P
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Question
From last year to this year, Berry Barn reported that its
Net Sales increased from $300,000 to $400,000 and its
Gross Profit increased from $90,000 to $130,000. Was the
Gross Profit increase caused by ( a ) an increase in sales
volume only, ( b ) an increase in gross profit per sale only,
or ( c ) a combination of both? Explain your answer.
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