The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the Sales division that the quantity sold in 2022 was 25% higher than in 2021 and that the production costs in 2022 were lower than that of the 2021 by 6%. The increase (decrease) in net sales due to price factor or the Sales Price Variance is * O For the year ended December 31, 2021 and 2022 the following data were presented to the management of Bulldogs Inc.: Net Sales Cost of Sales Gross Margin 2022 P1,363,000 1,250,000 P911,800 P451,200 |2021 776,000 474,000
The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the Sales division that the quantity sold in 2022 was 25% higher than in 2021 and that the production costs in 2022 were lower than that of the 2021 by 6%. The increase (decrease) in net sales due to price factor or the Sales Price Variance is * O For the year ended December 31, 2021 and 2022 the following data were presented to the management of Bulldogs Inc.: Net Sales Cost of Sales Gross Margin 2022 P1,363,000 1,250,000 P911,800 P451,200 |2021 776,000 474,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
10
Transcribed Image Text:The management requested you to determine the cause of the decline in gross profit on sales
in spite of the favorable information given by the Sales division that the quantity sold in 2022
was 25% higher than in 2021 and that the production costs in 2022 were lower than that of
the 2021 by 6%. The increase (decrease) in net sales due to price factor or the Sales Price
Variance is * A
For the year ended December 31, 2021 and 2022 the following data were presented to
the management of Bulldogs Inc.:
Net Sales
P1,363,000
1,250,000
Gross Margin
P451,200
474,000
Cost of Sales
2022
P911,800
2021
776,000
O P113,000
O (P113,000)
O P199,500
O (P199,500)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education