Natsu Inc. has a budgeted gross profit of P2,450,000. The firm also determined that its gross profit margin is 50% and its return on sales is 20%. If Natsu Inc. has an unfavorable total gross profit variance of 600,000 and total assets of P5,920,000, what is the actual return on assets?

Natsu Inc. has a budgeted gross profit of P2,450,000. The firm also determined that its gross profit margin is 50% and its return on sales is 20%. If Natsu Inc. has an unfavorable total gross profit variance of 600,000 and total assets of P5,920,000, what is the actual return on assets?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Natsu Inc. has a budgeted gross profit of P2,450,000. The firm also determined that its gross profit margin is 50% and its return on sales is 20%. If Natsu Inc. has an unfavorable total gross profit variance of 600,000 and total assets of P5,920,000, what is the actual return on assets?

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