calculate the percent change in gross profit from quarter 1 to quarter 2 from the following income statement…

calculate the percent change in gross profit from quarter 1 to quarter 2 from the following income statement information:\n\n| | q1 (x1000) | q2 (x1000) |\n|--|--|--|\n| net sales | 115 | 125 |\n| cogs | 30 | 31 |\n| gross profit | 85 | 94 |\n| overhead | 32 | 41 |\n| net income | 53 | 53 |\n\npercent change = ?%\n\nenter your answer as a percent rounded to the nearest tenth.

calculate the percent change in gross profit from quarter 1 to quarter 2 from the following income statement information:\n\n| | q1 (x1000) | q2 (x1000) |\n|--|--|--|\n| net sales | 115 | 125 |\n| cogs | 30 | 31 |\n| gross profit | 85 | 94 |\n| overhead | 32 | 41 |\n| net income | 53 | 53 |\n\npercent change = ?%\n\nenter your answer as a percent rounded to the nearest tenth.

Answer

Answer:

10.6%

Explanation:

Step1: Identify the formula

Percent Change = $\frac{\text{New Value}-\text{Old Value}}{\text{Old Value}}\times100%$

Step2: Determine old and new values

Old Gross Profit (Q1) = 85, New Gross Profit (Q2) = 94

Step3: Substitute values into formula

Percent Change = $\frac{94 - 85}{85}\times100%=\frac{9}{85}\times100%$

Step4: Calculate the result

$\frac{9}{85}\times100%\approx0.10588\times100% = 10.588%$

Step5: Round the result

Rounding 10.588% to the nearest tenth gives 10.6%