When comparing Q1 for 2013 and 2014, what items cause significant changes in sal

Question

When comparing Q1 for 2013 and 2014, what items cause significant changes in sales and profitability, and what factors of business may be responsible for those changes? Please elaborabte. Do we use Regression or ANOVA in excel?

Q1 2014 Units Sales COGS Gross Profit Gross Margin Item A 100 $         1,500,000 $          500,000 $   1,000,000 66.7% Item B                         75 $         1,875,000 $       1,050,000 $      825,000 44.0% Item C                       300 $         5,400,000 $       3,000,000 $   2,400,000 44.4% $         8,775,000 $       4,550,000 $   4,225,000 48.1%

Explanation / Answer

Answer:

Particulars 2013 2014 Change in Sales Change in Profitability Reason Sales per unit Profitability per unit Sales per unit Profitability per unit Item A 12500 5000 15000 10000 2500 5000 The increase in selling price per units has resulted in increase in profitability by 5000 per unit because the sales price has increased and the COGS has reduced. Item B 27500 15500 25000 11000 (2500) (4500) The reduction in selling price and increase in COGS has resulted in reduction in Profitability by 4500 Item C 18000 6000 18000 8000 Nil 2000 Reduction is COGS has resulted in increase in Profitability.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.