A Company Reported a Decrease in Sales Revenue from $860,000

question 175

Essay

A company reported a decrease in sales revenue from $860,000 last year to $760,000 this year and a decrease in gross profit from $400,000 last year to $360,000 this year.
Required:
Part a.Calculate the gross profit percentages for both years.
Part b.Was the change in gross profit caused by the change in sales volume,the change in the gross profit per sale,or a combination of the two? Explain.

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Definitions:

Double Effect

A principle in ethics that allows actions which have both a positive and a negative effect, especially in medical ethics where the aim is to relieve suffering even if it may hasten death.

Cosmetic Surgery

Medical procedures performed to enhance or change one's appearance for cosmetic rather than medical reasons.

Totality Principle

A philosophical concept that considers the moral decisions based on the totality of circumstances, including all moral rules and principles.

Beneficence

An ethical principle that involves acting in the best interest of others by promoting their well-being.