A Company Reported a Decrease in Sales Revenue from $860,000

Essay

A company reported a decrease in sales revenue from $860,000 last year to $760,000 this year and a decrease in gross profit from $400,000 last year to $360,000 this year.
Required:
Part a.Calculate the gross profit percentages for both years.
Part b.Was the change in gross profit caused by the change in sales volume,the change in the gross profit per sale,or a combination of the two? Explain.