Net sales at Kelly's Bakery increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000, then vertical analysis based on net sales would show the following percentages for cost of goods sold (rounded to the nearest percent):

Question

Quizplus · Accepted Answer

Cost of goods sold increased from $20,000 to $40,000, which is an increase of $20,000. 
Vertical analysis based on net sales for cost of goods sold is: 
Cost of goods sold / Net sales * 100% = 
$40,000 / $60,000 * 100% = 66.67%, rounded to 67%. 
Therefore, the answer is C, which shows 50% and 67%.

Net Sales at Kelly's Bakery Increased from $40,000 to $60,000