Assume the following cost of goods sold data for a company: If 2019 is the base year, what is the percentage increase in cost of goods sold from 2019 to 2021?

Question

Assume the following cost of goods sold data for a company:  If 2019 is the base year, what is the percentage increase in cost of goods sold from 2019 to 2021?

Quizplus · Accepted Answer

To calculate the percentage increase in cost of goods sold from 2019 to 2021, we need to use the formula:

Percentage Increase = ((Cost of Goods Sold in 2021 - Cost of Goods Sold in 2019) / Cost of Goods Sold in 2019) * 100

From the data given, we can see that the cost of goods sold in 2019 is $1,500,000 and the cost of goods sold in 2021 is $2,100,000. Plugging these values into the formula, we get:

Percentage Increase = (($2,100,000 - $1,500,000) / $1,500,000) * 100 = 40%

Therefore, the percentage increase in cost of goods sold from 2019 to 2021 is 40%. The answer is B.

Assume the Following Cost of Goods Sold Data for a Company