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Calculate the gross profit percentage for both companies

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Problem - Fortune Brands Home & Security, Inc.sells Master Lock padlocks. It reported an increase in net sales from $5.0 billion in 2011 to $5.3 billion in 2012, and an increase in gross profit from $1.5 billion in 2011 to $1.7 billion in 2012.

a. Calculate each year's gross profit percentage.

b. Determine whether the change in gross profit was caused by.

i) an increase in gross profit per sale. or

ii) an increase in sales volume. or

iii) an increase in gross profit per sale and sales volume.

c. Sole Occhiali Group, an Italian company that sells sunglasses, reported Net Sales of $195,000 and Cost of Goods Sold of $66,600. Candy Electronics Corp. reported Net Sales of $53,000 and Cost of Goods Sold of $39,800.

Calculate the Gross Profit Percentage for both companies.

Reference no: EM131738579

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