Please help me to answer Requirement 1A & 1C only. Thank you!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please help me to answer Requirement 1A & 1C only. Thank you!
![Exercise 6-22
Profit and loss data for Lota & Romy, Inc. for 2019 and 2020 follow:
2019
2020
Increase
P2,688,000
(Decrease)
P762,000
Sales
P3,450,000
Cost of Sales
1,920,000
2,760,000
840,000
Gross Profit
P768,000
P690,000
P(78,000)
REQUIRED:
1. Prepare a statement/summary analyzing the variation in gross profit giving as
much information as can be determined concerning factors responsible for the
change, under each of the following independent assumptions:
a. Total units sold in 2020 are 25% above units sold in 2019.
D. Selling prices in 2020 are 20% above the selling prices in 2019.
* Cost prices in 2020 are 10% lower than the cost prices in 2019.
4. No data are available relative to prices and volume changes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6214a92e-0638-4ee2-8d08-d8c89d569307%2Fa849cd8f-d569-43b2-9669-4ff33fd2fb85%2Fee11qxe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 6-22
Profit and loss data for Lota & Romy, Inc. for 2019 and 2020 follow:
2019
2020
Increase
P2,688,000
(Decrease)
P762,000
Sales
P3,450,000
Cost of Sales
1,920,000
2,760,000
840,000
Gross Profit
P768,000
P690,000
P(78,000)
REQUIRED:
1. Prepare a statement/summary analyzing the variation in gross profit giving as
much information as can be determined concerning factors responsible for the
change, under each of the following independent assumptions:
a. Total units sold in 2020 are 25% above units sold in 2019.
D. Selling prices in 2020 are 20% above the selling prices in 2019.
* Cost prices in 2020 are 10% lower than the cost prices in 2019.
4. No data are available relative to prices and volume changes.
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