Ben-Shien’s Wonton Works produces two grades of dumpling wrappers, standard and deluxe. Sales and cost of sales for both products for 1999 and 2000 were:

1999 2000

(Dollars in thousands)

Standard Deluxe Standard Deluxe Sales $600 $900 $900 $600 Cost of sales $500 $600 $750 $400 Required

a. Determine Ben-Shien’s total sales, gross profit, and gross profit percentage in each year.

b. Conduct a horizontal (percentage change) analysis of the sales, cost of sales, and gross margin amounts.

c. Explain why Ben-Shien’s overall gross profit declined during 2000