Question

calculate the percent change in overhead from quarter 1 to quarter 2 from the following income statement information:
q1 (×1000) q2 (×1000)
net sales 120 152
cogs 22 34
gross profit 87 121
overhead 34 48
net income 57 65
percent change = ?%
enter your answer as a percent rounded to the nearest tenth.

Explanation:

Step1: Identify Q1 and Q2 Overhead

Q1 Overhead: \( 34 \) (x1000), Q2 Overhead: \( 48 \) (x1000)

Step2: Calculate Change

Change = Q2 - Q1 = \( 48 - 34 = 14 \)

Step3: Calculate Percent Change

Percent Change = \( \frac{\text{Change}}{\text{Q1}} \times 100 = \frac{14}{34} \times 100 \approx 41.2 \)

Answer:

41.2%