IDNLearn.com is designed to help you find the answers you need quickly and easily. Ask anything and receive thorough, reliable answers from our community of experienced professionals.

Calculate the percent change in COGS from Quarter 1 to Quarter 2 using the following income statement information:

\begin{tabular}{lcc}
& Q1 & Q2 [tex][tex]$(\times 1000)$[/tex][/tex] \\
Net Sales & 115 & 125 \\
COGS & 30 & 31 \\
Gross Profit & 85 & 94 \\
Overhead & 32 & 41 \\
Net Income & 53 & 53 \\
\end{tabular}

Percent Change [tex][tex]$=[?] \%$[/tex][/tex]


Sagot :

To calculate the percent change in the Cost of Goods Sold (COGS) from Quarter 1 to Quarter 2, follow these steps:

1. Identify the COGS values for Quarter 1 (Q1) and Quarter 2 (Q2) from the given table.
- COGS for Q1 = 30
- COGS for Q2 = 31

2. Calculate the difference in COGS between Q1 and Q2.
[tex]\[ \text{Difference in COGS} = \text{COGS in Q2} - \text{COGS in Q1} = 31 - 30 = 1 \][/tex]

3. Find the percent change using the formula:
[tex]\[ \text{Percent Change} = \left( \frac{\text{Difference in COGS}}{\text{COGS in Q1}} \right) \times 100 \][/tex]

4. Substitute the values into the formula:
[tex]\[ \text{Percent Change} = \left( \frac{1}{30} \right) \times 100 \][/tex]

5. Perform the division:
[tex]\[ \frac{1}{30} = 0.0333333333 \][/tex]

6. Multiply by 100 to convert to a percentage:
[tex]\[ 0.0333333333 \times 100 = 3.3333333333 \][/tex]

Therefore, the percent change in COGS from Quarter 1 to Quarter 2 is approximately [tex]\(3.33\%\)[/tex].