1 F or 11,111 U Total gross profit variance = Price varianc
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Compute for the following and Indicate if its FAVORABLE or UNFAVORABLE.
Format: 11,111 F or 11,111 U
- Total gross profit variance =
- Price variance =
![The income statement of GMA Company for the years
ended
December 31, 2020 and 2021 showed the following data.
2020
2021
Net Sales
800,000
924,000
Cost of Sales
480,000
501,600
Gross Margin
320,000
422,400
Operating expenses
180,000
140,000
220,000
202,400
Net income
Additional Data:
Units sold
80,000
88,000
Unit selling price
10.00
10.50
Unit cost
6.00
5.70](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6df37e6-8d93-475e-9436-4a140d6aa291%2F46244a60-20f2-4b8a-bb7b-2b10bd8837d3%2F68loxm_processed.png&w=3840&q=75)
Transcribed Image Text:The income statement of GMA Company for the years
ended
December 31, 2020 and 2021 showed the following data.
2020
2021
Net Sales
800,000
924,000
Cost of Sales
480,000
501,600
Gross Margin
320,000
422,400
Operating expenses
180,000
140,000
220,000
202,400
Net income
Additional Data:
Units sold
80,000
88,000
Unit selling price
10.00
10.50
Unit cost
6.00
5.70
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