Fancy Footwear is a premier designer and manufacturer of designer shoes for women. Over the past two years, they have concerted a lot of effort into both their Boots and Heels divisions. The results of their efforts are as follows: Management is interested in analyzing this data. Find out whether Boots or Heels had a greater percent change in the cost of goods sold (COGS) from Year 1 to year 2?
A) Boots did, they have a 20.29% change in cost of goods sold over that span.
B) Boots did, they have a 27.37% change in cost of goods sold over that span.
C) Heels did, they had a 20.29% change in cost of goods sold over that span.
D) Heels did, they have a 9.93% change in cost of goods sold over that span.

Question

Fancy Footwear is a premier designer and manufacturer of designer shoes for women. Over the past two years, they have concerted a lot of effort into both their Boots and Heels divisions. The results of their efforts are as follows:  Management is interested in analyzing this data. Find out whether Boots or Heels had a greater percent change in the cost of goods sold (COGS) from Year 1 to year 2?
A) Boots did, they have a 20.29% change in cost of goods sold over that span. 
B) Boots did, they have a 27.37% change in cost of goods sold over that span. 
C) Heels did, they had a 20.29% change in cost of goods sold over that span. 
D) Heels did, they have a 9.93% change in cost of goods sold over that span.

Quizplus · Accepted Answer

To calculate the percent change in Cost of Goods Sold for Boots from Year 1 to year 2, use the following formula: "(COGS for Year 2 - COGS for Year 1)/(COGS for Year 1)" that should return an answer of 20.29%. Repeat this process for Heels, and you should get a value of 9.93%. Hence, you can say that Boots have a higher percentage change value of 20.29% in COGS from year 1 to year 2 compared to 9.93% for Heels. (Choice A).

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