Determine whether the change in gross profit was caused by

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Fortune Brands Home & Security, Inc.sells Master Lock padlocks. It reported an increase in net sales from $4.9 billion in 2011 to $5.2 billion in 2012, and an increase in gross profit from $1.4 billion in 2011 to $1.6 billion in 2012.

a. Calculate each year’s gross profit percentage. (Round your answers to 1 decimal place.)

Gross Profit Percentage 2012=______%

Gross profit Percentage 2011=_______%

b. Determine whether the change in gross profit was caused by.

A- an increase in gross profit per sale.

B- an increase in sales volume.

C- an increase in gross profit per sale and sales volume.

Reference no: EM131211321

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