Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000
Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020.
|
|
2021 |
2020 |
Inc (Dec) |
|
Net sales |
P2,750,000 |
P2,500,000 |
P250,000 |
|
Cost of goods sold |
1,584,000 |
1,600,000 |
( 16,000) |
|
Gross margin |
P1,166,000 |
P 900,000 |
P234,000 |
The unit cost decreased by 10% on January 1, 2021.
What is the effect on sales due to change in selling price?
cite if increase or decrease
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