Vargross Company presented the following data for analysis affecting its gross profit. The company is selling two products, Avon and Bona 2021 2020 Net Sales 228,000 175,000 128,400 99,600 Cost of Sales 105,000 Gross Margin 70,000 Additional data: 2021 2020 Items Avon Bona Avon Bona Units sold 12,000 16,000 10,000 15,000 Unit selling price 1.00ו 6.00 10.00 5.00 Unit costs 6.30 3.30 6.00 3.00 Unit GP 4.70 2.70 4.00 2.00
Vargross Company presented the following data for analysis affecting its gross profit. The company is selling two products, Avon and Bona 2021 2020 Net Sales 228,000 175,000 128,400 99,600 Cost of Sales 105,000 Gross Margin 70,000 Additional data: 2021 2020 Items Avon Bona Avon Bona Units sold 12,000 16,000 10,000 15,000 Unit selling price 1.00ו 6.00 10.00 5.00 Unit costs 6.30 3.30 6.00 3.00 Unit GP 4.70 2.70 4.00 2.00
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29E
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Question
Compute for the following:
1. Sales price variance
2. Cost price variance
3. Quantity variance
Note: Indicate if it is favorable or unfavorable
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