If the sales this year amounted to P500,000, sales this year at last year's prices isP460,000, the cost of sales this year is P300,000, and the cost of sales this yearat last year's price is P260,000. How much is the gross profit variation due tosales price factor? * The Success Corporation has a normal capacity of 2,000,000 units. The currentyear's budget was based on the production and sales of 1,400,000 units. Actualstatistics came out to be: production of 1,440,000 units and sales of 1,200,000units. Selling price is at P20 per unit and the contribution margin ratio is 30%.What is the peso value that best quantifies the marketing division's failure toachieve budgeted performance for the current year? *

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

If the sales this year amounted to P500,000, sales this year at last year's prices is
P460,000, the cost of sales this year is P300,000, and the cost of sales this year
at last year's price is P260,000. How much is the gross profit variation due to
sales price factor? *

The Success Corporation has a normal capacity of 2,000,000 units. The current
year's budget was based on the production and sales of 1,400,000 units. Actual
statistics came out to be: production of 1,440,000 units and sales of 1,200,000
units. Selling price is at P20 per unit and the contribution margin ratio is 30%.
What is the peso value that best quantifies the marketing division's failure to
achieve budgeted performance for the current year? *

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