Fortune Brands Home & Security, Inc.sells Master Lock padlocks. It reported an increase in net sales from $4.9 billion in 2011 to $5.2 billion in 2012, and an increase in gross profit from $1.4 billion in 2011 to $1.6 billion in 2012.
a. Calculate each year’s gross profit percentage. (Round your answers to 1 decimal place.)
Gross Profit Percentage 2012=______%
Gross profit Percentage 2011=_______%
b. Determine whether the change in gross profit was caused by.
A- an increase in gross profit per sale.
B- an increase in sales volume.
C- an increase in gross profit per sale and sales volume.