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 volume factor or the Sales Volume Variance is       a.(P312,500) b. P312,500 c.P194,000 d. (P194,000)

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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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 volume factor or the Sales Volume Variance is
 
 
 
a.(P312,500)
b. P312,500
c.P194,000
d. (P194,000)
For the year ended December 31, 2021 and 2022 the following data were presented to
the management of Bulldogs Inc.:
Cost of Sales
P911,800
776,000
Net Sales
Gross Margin
2022
P1,363,000
P451,200
474,000
2021
1,250,000
Transcribed Image Text:For the year ended December 31, 2021 and 2022 the following data were presented to the management of Bulldogs Inc.: Cost of Sales P911,800 776,000 Net Sales Gross Margin 2022 P1,363,000 P451,200 474,000 2021 1,250,000
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