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: q1 (x1000) q2 (x1000) net sales 115 125 cogs 30 31 gross profit 85 94 overhead 32 41 net income 53 53 percent change = ?% enter 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: q1 (x1000) q2 (x1000) net sales 115 125 cogs 30 31 gross profit 85 94 overhead 32 41 net income 53 53 percent change = ?% enter your answer as a percent rounded to the nearest tenth.

Answer

Explanation:

Step1: Identify the formula

Percent change formula is $\frac{\text{New Value}-\text{Old Value}}{\text{Old Value}}\times100%$. Here, old - value of gross profit is from Q1 and new - value is from Q2.

Step2: Substitute the values

The gross profit in Q1 is 85 (in thousands) and in Q2 is 94 (in thousands). Substitute into the formula: $\frac{94 - 85}{85}\times100%$.

Step3: Calculate the numerator

$94−85 = 9$. So the expression becomes $\frac{9}{85}\times100%$.

Step4: Calculate the fraction value

$\frac{9}{85}\approx0.10588$. Then $0.10588\times100% = 10.588%$.

Step5: Round to the nearest tenth

Rounding $10.588%$ to the nearest tenth gives $10.6%$.

Answer:

$10.6%$