A sportswear retaller reported net sales of $300,000 in year 1. Its cost of sales was...

 

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A sportswear retaller reported net sales of $300,000 in year 1. Its cost of sales was $180,000 for the same year. For years 2 and 3, the retailer plans to increase net sales by 10 percent in year 2 and 15 percent in year 3. It also plans to negotiate a better contract with the sportswear manufacturer so that the cost of sportswear that is purchased and sold would increase by a maximum of 8 percent in year 2 and by 12 percent in year 3. (Do not round intermediate calculations. Round percentage answer to 1 decimal place (1.e., 0.124 should be entered as 12.4).) Required: 1. Compute the gross profit for year 1. Gross profit 2. Compute the percentage changes in gross profit for years 2 and 3. Year 2 Year 3 Percent change % %6 A sportswear retaller reported net sales of $300,000 in year 1. Its cost of sales was $180,000 for the same year. For years 2 and 3, the retailer plans to increase net sales by 10 percent in year 2 and 15 percent in year 3. It also plans to negotiate a better contract with the sportswear manufacturer so that the cost of sportswear that is purchased and sold would increase by a maximum of 8 percent in year 2 and by 12 percent in year 3. (Do not round intermediate calculations. Round percentage answer to 1 decimal place (1.e., 0.124 should be entered as 12.4).) Required: 1. Compute the gross profit for year 1. Gross profit 2. Compute the percentage changes in gross profit for years 2 and 3. Year 2 Year 3 Percent change % %6