The following income statement data presented by VGP Company for the years ended December 31, 2020 and 2021: 2020 2021 Net Sales 600,000 699,600 Cost of Sales 360,000 240,000 380,160 Gross Margin 319,440 Additional data: During 2021, the following transpired that affected net sales, cost of sales, which contributed in the changes in gross margin: a. Units sold in 2021 was 10% higher than 2020 b. Units selling price in 2021 was 6% higher than 2020 c. Unit cost in 2021 was 4% lower than 2020
The following income statement data presented by VGP Company for the years ended December 31, 2020 and 2021: 2020 2021 Net Sales 600,000 699,600 Cost of Sales 360,000 240,000 380,160 Gross Margin 319,440 Additional data: During 2021, the following transpired that affected net sales, cost of sales, which contributed in the changes in gross margin: a. Units sold in 2021 was 10% higher than 2020 b. Units selling price in 2021 was 6% higher than 2020 c. Unit cost in 2021 was 4% lower than 2020
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Question
Compute for the following and indicate if its FAVORABLE or UNFAVORABLE.
Format: 11,111 F or 11,111 U
- Sales price variance =
- Sales volume variance=
- Sales variance=
Transcribed Image Text:The following income statement data presented by VGP Company for the years
ended December 31, 2020 and 2021:
2020
2021
Net Sales
600,000
699,600
Cost of Sales
360,000
240,000
380,160
Gross Margin
319,440
Additional data:
During 2021, the following transpired that affected net sales, cost of sales, which
contributed in the changes in gross margin:
a. Units sold in 2021 was 10% higher than 2020
b. Units selling price in 2021 was 6% higher than 2020
c. Unit cost in 2021 was 4% lower than 2020
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