This is specifically Management Accounting.

2-35 CVP and Financial Statements ConAgra, Inc, is an Omaha-based company that produces food products under brand names such as Healthy Choice, Armour, and Banquet. In 1994 the company's sales increased by 12% and its 1994 income statement showed the following (in millions): Net Sales Costs of Goods Sold Selling, Administrative, and General Expense Interest Expense Operating Income $23,510 20,450 2,090 720 Suppose that the cost of goods sold is the only variable cost; selling, administrative. eral, and interest expenses are fixed with respect to sales Assume that ConAgra had another 12% increase in sales in 1995 and that there was n. in costs except for increases associated with the higher volurne of sales, Compute pndicted 1995 (px ating profit for ConAgra and the percentage increase in operating prof Explain why the percentage increase in profit differs from the percentage increase in sales