Acc/561 - Week 3 - Practice Text Exercises

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Acc/561 - Week 3 - Practice Text Exercises

Week 3 - Practice Text Exercises

Question 2-48, CVP and Financial Statements for a Mega-Brand Company, on p. 82

The percentage increase in income differs from the percentage increase in sales because variable cost, which were the Costs of products sold, changed in direct proportion to changes in net sales. Therefore, the income increase is relative to the difference in Cost of products sold versus the Net sales.

2007 Operating Income for Procter & Gamble

Net sales $75,044.20
Costs of products sold 36,437.50
Selling, general, and administrative expense 21,848.00___
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