The Following Information Comes from P Co 1 Compute the Gross Profit Percentage for
A

Essay

The following information comes from P Co.'s statements of earnings for 20X7 and 20X6: $$\begin{array} { | l | r | r | } \hline \text { (In millions) } & \underline { \mathbf { 2 0 X 7 } } & \underline { \mathbf { 2 0 X 6 } } \\\hline \text { Net sales } & \$ 22,348 & \$ 20,917 \\\hline \text { Cost of sales } & \$ 9,330 & \$ 8,525 \\\hline\end{array}$$ 1. Compute the gross profit percentage for
a. 20X7 __________
b. 20X6 __________
2. Provide at least two potential reasons for the change in P Co's gross profit percentage.