MacMan,Inc The Horizontal Analysis Shows That Cost of Goods Sold Has

question 149

Multiple Choice

MacMan,Inc.reported the following data: $\begin{array}{|l|r|r|r|r|}\hline &2019 & 2018 & \text { Amount } & \text { Percentage } \\\hline\text { Revenues } & \$ 6370 & \$ 4980 & \$ 1390 & 27.91 \% \\\hline \text { Cost of goods sold } & 3370 & \underline{2500} & \underline{870} & 34.80 \% \\\hline \text { Gross profit } & 3000 & 2480 & 520 & 20.97 \% \\\hline \text { Operating expenses: } & & & & \\\hline \text { Sales and marketing expense } & 730 & 630 & 100 & 15.87,00 \% \\\hline\text { General and administrative } & 420 & 440 & -20 & -4.55 \% \\\text { expenses } & & & & \\\hline \text { Research and development } \\\text { expense } & 470 & 410 & 60 & 14.63 \%\\ \hline\text { Other expense }& 430 & 730 & (300) & (41.10) \%\\\hline \text { Total operating expenses } & \underline{2050} & 2210 & (160) & (7.24) \% \\\hline \text { Income before income tax } & 950 & 270 & 680 & 251.85 \% \\\hline \text { Income tax expense } & \underline{260} & \underline{250} & \$ 10 & 4 \% \\\hline \text { Net income (loss) } & \$ 690 & \$ 20 & \$ 670 & 3350 \% \\\hline\end{array}$
The horizontal analysis shows that cost of goods sold has ________.(Round your answer to two decimal places.)

• A) increased by 27.91%
• B) decreased by 27.91%
• C) increased by 34.80%
• D) decreased by 34.80%

Identify factors that influence the introduction and success of new products in the market.

Analyze how consumer preferences and budget constraints impact the utility maximization process.

Discuss the role and impact of process innovations on firm production and average total cost.

Recognize legal protections available for innovations and understand their implications for R&D, imitation, and market competition.

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Definitions:

Graphical Approach

A method of solving problems or representing data using diagrams, charts, or graphs.

CVP Analysis

Cost-Volume-Profit Analysis, a management accounting methodology used for understanding the relationship between costs, volumes of sales, and profit.

Variable Cost

Costs that vary in proportion to the level of activity or volume of production in a business.

Annual Fixed Costs

Expenses that a business incurs that do not fluctuate with changes in production level or sales volume, such as rent or salaries, benchmarked on a yearly basis.