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  1. business
  2. accounting
  3. b. comment briefly on the changes between the two

b. Comment briefly on the changes between the two years. ...

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Accounting

b. Comment briefly on the changes between the two years.
Although sales revenue increased 33.3%, cost of goods sold increased only 20.4%.
As a result, gross profit increased 54.4%. The firm's selling prices are apparently increasing
at a faster pace than product costs.
A favorable aspect is that selling expenses increased by only 6.1%
compared with the 33.3% increase in sales.
Also, administrative expenses increased 20.0%, and total expenses increased only 10.7%.
The smaller increase in expenses enabled the firm to increase its income before
income taxes by 350.0% and net income by 400.0%.

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