Answer:
If sales are $5,000,000 in 2019, the sales in 2020 will be
$6,500,000
Explanation:
a) Data and Calculations:
2019 2020 Change
Percentage change in sales 100% 130% 30% increase
Percentage change in cost of
goods sold 100% 120% 20% increase
Percentage change in
gross profit 100% 125% 25% increase
Sales are in 2019 = $5,000,000 $6,500,000 ($5 million * 130/100)
Alternatively, the 30% increase can be computed, to get $1,500,000 ($5,000,000 * 30%). This change in sales is then added to the 2019 sales figure to get $6,500,000, which is the sales in 2020.
