The portion of the functional income statements of Brief Company for 2021 and 2020 are presented below: 2021 2020 Sales P890,000 P800,000 Cost of goods sold 530,000 450,000 Gross margin 360,000 350,000 Assuming that the selling price in 2021 is reduced by 11 percent effective January 1, calculate the change in gross profit due to change in unit cost. Group of answer choices P32,500 Favorable P25,694 Unfavorable P25,694 Favorable P32,500 Unfavorable
The portion of the functional income statements of Brief Company for 2021 and 2020 are presented below: 2021 2020 Sales P890,000 P800,000 Cost of goods sold 530,000 450,000 Gross margin 360,000 350,000 Assuming that the selling price in 2021 is reduced by 11 percent effective January 1, calculate the change in gross profit due to change in unit cost. Group of answer choices P32,500 Favorable P25,694 Unfavorable P25,694 Favorable P32,500 Unfavorable
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 87PSB
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Question
The portion of the functional income statements of Brief Company for 2021 and 2020 are presented below:
|
|
2021 |
2020 |
|
Sales |
P890,000 |
P800,000 |
|
Cost of goods sold |
530,000 |
450,000 |
|
Gross margin |
360,000 |
350,000 |
|
|
|
|
Assuming that the selling price in 2021 is reduced by 11 percent effective January 1, calculate the change in gross profit due to change in unit cost.
Group of answer choices
P32,500 Favorable
P25,694 Unfavorable
P25,694 Favorable
P32,500 Unfavorable
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