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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].