The following gross profit data are taken from the financial records of the Eckhardt Company:

Required
1. If it is known that volume declined 5% from 2007 to 2008, by how much did selling prices change?
2. If it is known that volume declined 5% from 2007 to 2008, by how much did costs change?
3. If selling prices increased 4% from 2007 to 2008, what effect would this factor alone have on gross profit?
4. If costs increased by 7% from 2007 to 2008, what effect would this factor have on grossprofit?

2007 2008 Sales Cost of goods sold Gross profit $300,000 $296,000 (200,000) (203,300) 5100,000 92.700