The president of National Co., after being informed that the 2021 selling price was 6% lower than 2020, would like to know other factors that changes the gross margin as shown below. 2021 2020 P420,000.00 P243.600.00 Net Sales Cost of Sales P426,384.00 P276.242.40 D47C 100 D450 444C

Production is less than sales. i.e. closing inventory is reducing Absorption costing will produce a lower profit Why?

As the level of activity increases, how will a mixed cost in total and per unit behave? A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effect

At break even point: a) sales - contribution margin = net income or net loss b) sales - fixed expenses = variable expenses c) sales + variable expenses = contribution margin d) contribution margin + fixed expenses = net income

Which of the following statements correctly complete the sentence:"Gross Margin equals":I.   sales revenue less (minus) cost of goods sold.II.  contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV.  sales revenue less (minus) cost of goods manufactured.

When the sales price per unit decreases, the contribution margin per unit A. decreases B. increases OC. increases proportionately OD. remains the same 13