Morningside Farms Gross ProfitIncreased Gross Profit $s. Increased Gross Profit Margin(Thousands of $s)20142013ChangeChange %$5,730$2,681$3,049Revenue$5,275$4559%$2,530$2,745$151$304Cost of Goods Sold6%Gross Profit11%Gross Profit Margin(%)53.2%52.0%Suggest some business reasons to explain the changesin gross profit $s and gross profit margin for eachcompany.

Answer The change in gross profit is due to fact that Increase in revenue is more than increase in…

orningside Farms Gross Profit ncreased Gross Profit $s. Increased Gross Profit Margin (Thousands of $s) 2014 2013 Change Change % evenue $5,730 $5,275 $455 $2,681 $3,049 $2,530 $2,745 $151 $304 Cost of Goods Sold 6% ross Profit 11% Gross Profit Margin(%) 53.2% 52.0% ggest some business reasons to explain the chang gross profit $s and gross profit margin for each mpany.

orningside Farms Gross Profit ncreased Gross Profit $s. Increased Gross Profit Margin (Thousands of $s) 2014 2013 Change Change % evenue $5,730 $5,275 $455 $2,681 $3,049 $2,530 $2,745 $151 $304 Cost of Goods Sold 6% ross Profit 11% Gross Profit Margin(%) 53.2% 52.0% ggest some business reasons to explain the chang gross profit $s and gross profit margin for each mpany.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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