Determine the following: Sales price variance Sales volume variance Sales variance Cost price variance Total gross profit variance Price variance
Determine the following: Sales price variance Sales volume variance Sales variance Cost price variance Total gross profit variance Price variance
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 87PSB
Related questions
Question
Determine the following:
- Sales price variance
- Sales volume variance
- Sales variance
- Cost price variance
- Total gross profit variance
- Price variance
![Problem 2
The following income statement data presented by VGP Company for the years
ended December 31, 2020 and 2021:
2020
2021
Net Sales
699,600
380,160
600,000
Cost of Sales
360,000
Gross Margin
240,000
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F532d9d8c-6952-4291-8f54-8d088330d688%2Fcc486e07-9850-4a8d-9502-b04245850fcf%2F0kgmdv_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 2
The following income statement data presented by VGP Company for the years
ended December 31, 2020 and 2021:
2020
2021
Net Sales
699,600
380,160
600,000
Cost of Sales
360,000
Gross Margin
240,000
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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