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 effective January of 2021 the unit cost is higher by 6 percent, calculate the change in sales due to change in volume rounded to nearest thousands. P85,000 Unfavorable P88,000 Favorable P88,000 Unfavorable P85,000 Favorable
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 effective January of 2021 the unit cost is higher by 6 percent, calculate the change in sales due to change in volume rounded to nearest thousands. P85,000 Unfavorable P88,000 Favorable P88,000 Unfavorable P85,000 Favorable
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 77E: Ratio Analysis The following information was taken from Logsden Manufacturings trial balances as of...
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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 effective January of 2021 the unit cost is higher by 6 percent, calculate the change in sales due to change in volume rounded to nearest thousands.
P85,000 Unfavorable
P88,000 Favorable
P88,000 Unfavorable
P85,000 Favorable
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