For the year ended December 31, 2021 and 2022 the following data were presented to the management of Bulldogs Inc.: Net Sales Cost of Sales Gross Margin P451,200 2022 P1,363,000 P911,800 2021 1,250,000 776,000 474,000
For the year ended December 31, 2021 and 2022 the following data were presented to the management of Bulldogs Inc.: Net Sales Cost of Sales Gross Margin P451,200 2022 P1,363,000 P911,800 2021 1,250,000 776,000 474,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 price factor or the Sales Price Variance is
choices:
P113,000
P199,500
(P199,500)
(P113,000)
![For the year ended December 31, 2021 and 2022 the following data were presented to
the management of Bulldogs Inc.:
Net Sales
Cost of Sales
Gross Margin
P451,200
2022
P1,363,000
P911,800
2021
1,250,000
776,000
474,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F087d3108-4cfa-46ff-aa2e-e44ab38e72ad%2Ffa9e0ec9-7c28-4b5d-9359-1bc63d452aba%2Fgmps0t3_processed.png&w=3840&q=75)
Transcribed Image Text:For the year ended December 31, 2021 and 2022 the following data were presented to
the management of Bulldogs Inc.:
Net Sales
Cost of Sales
Gross Margin
P451,200
2022
P1,363,000
P911,800
2021
1,250,000
776,000
474,000
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