The following information comes from P Co.'s statements of earnings for 20X7 and 20X6: $$\begin{array} { | l | r | r | }
\hline \text { (In millions) } & \underline { \mathbf { 2 0 X 7 } } & \underline { \mathbf { 2 0 X 6 } } \
\hline \text { Net sales } & \$ 22,348 & \$ 20,917 \
\hline \text { Cost of sales } & \$ 9,330 & \$ 8,525 \
\hline
\end{array}$$ 1. Compute the gross profit percentage for
a. 20X7 __________
b. 20X6 __________
2. Provide at least two potential reasons for the change in P Co's gross profit percentage.

Question

The following information comes from P Co.'s statements of earnings for 20X7 and 20X6: $$\begin{array} { | l | r | r | } 
\hline \text { (In millions) } & \underline { \mathbf { 2 0 X 7 } } & \underline { \mathbf { 2 0 X 6 } } \
\hline \text { Net sales } & \$ 22,348 & \$ 20,917 \
\hline \text { Cost of sales } & \$ 9,330 & \$ 8,525 \
\hline
\end{array}$$ 1. Compute the gross profit percentage for 
a. 20X7 __________ 
b. 20X6 __________ 
2. Provide at least two potential reasons for the change in P Co's gross profit percentage.

Quizplus · Accepted Answer

The Answer of The following information comes from P Co.'s statements of earnings for 20X7 and 20X6: $$\begin{array} { | l | r | r | } 
\hline \text { (In millions) } & \underline { \mathbf { 2 0 X 7 } } & \underline { \mathbf { 2 0 X 6 } } \
\hline \text { Net sales } & \$ 22,348 & \$ 20,917 \
\hline \text { Cost of sales } & \$ 9,330 & \$ 8,525 \
\hline
\end{array}$$ 1. Compute the gross profit percentage for 
a. 20X7 __________ 
b. 20X6 __________ 
2. Provide at least two potential reasons for the change in P Co's gross profit percentage.

The Following Information Comes from P Co 1 Compute the Gross Profit Percentage for A

The Following Information Comes from P Co 1 Compute the Gross Profit Percentage for
A