The management of Tipoli Co Asked you to submit an analysis of the increase in their gross profit in 2001 based on their past two years comparative income statement which show

2001 2000

Sales 1,237,500 1,000,000

cost of sales 950,400 800,000

gross profit 287,100 200,000

the only known factor given to you is the sales prices increased 12.5% beginning January 2001

compute for revenue variances