Ask Question
4 January, 15:30

Assume the following cost of goods sold data for a company: 2016 $1,704,000 2015 1,400,000 2014 1,200,000 If 2014 is the base year, what is the percentage increase in cost of goods sold from 2014 to 2016? a. 70.4% b. 42% c. 85.7% d. 117%

+1
Answers (1)
  1. 4 January, 15:49
    0
    b. 42%

    Explanation:

    The percentage increase in cost of goods sold from 2014 to 2016 is ratio of the difference between the cost of sale in both years to the cost of sales in 2014 expressed as a percentage.

    Mathematically,

    percentage increase in cost of goods sold from 2014 to 2016

    = (b - a) / a * 100%

    where a = 2014 cost of sales, b = 2016 cost of sales

    percentage increase in cost of goods sold from 2014 to 2016

    = ($1,704,000 - $1,200,000) / $1,200,000

    = 0.42

    = 42%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Assume the following cost of goods sold data for a company: 2016 $1,704,000 2015 1,400,000 2014 1,200,000 If 2014 is the base year, what is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers