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Dept. A . Dept. B . Dept C Total Sales 450,000 600,000 750,000 1800,000 less VC 2 Profit 110,000 60,000 200,000 370,000 b. Suppose sales

Dept. A . Dept. B . Dept C Total

Sales 450,000 600,000 750,000 1800,000

less VC 2

Profit 110,000 60,000 200,000 370,000

b. Suppose sales in current year increases by 15%. Calculate profit as % of sales for the new level of sales and explain why the % is greater than the one calculated in part A.

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