Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 83

From 2012 to 2013, Berry Barn reported that its Net Sales increased from $300,000 to $400,000, and its Gross Profit increased from $90,000 to $130,000. Was the Gross Profit increase caused by ( a ) an increase in sales volume only, ( b ) an increase in gross profit per sale only, or ( c ) a combination of both Explain your answer.