Problem 8: The following income statement data presented by Laguna Corporation for the years ended December 31, 2017 and 2018: Sales Cost of Sales Gross Profit 2017 P 600,000 360,000 P 240,000 2018 P 699,600 380,160 P. 319,440 During 2018, the following transpired that affected net sales, cost of sales, which contributed in the changes in gross margin. 1. Units sold in 2018 was 10% higher than 2017 2. Unit selling price in 2018 was 6% higher than 2017 3. Unit cost in 2018 was 4% lower than 2017 Required: Perform a Gross Margin Analysis under the (a) Two-way; (b) Three-Way; and (c) Four-way method.
Problem 8: The following income statement data presented by Laguna Corporation for the years ended December 31, 2017 and 2018: Sales Cost of Sales Gross Profit 2017 P 600,000 360,000 P 240,000 2018 P 699,600 380,160 P. 319,440 During 2018, the following transpired that affected net sales, cost of sales, which contributed in the changes in gross margin. 1. Units sold in 2018 was 10% higher than 2017 2. Unit selling price in 2018 was 6% higher than 2017 3. Unit cost in 2018 was 4% lower than 2017 Required: Perform a Gross Margin Analysis under the (a) Two-way; (b) Three-Way; and (c) Four-way method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question
Problem 8: The following income statement data presented by Laguna Corporation for the years ended
December 31, 2017 and 2018:
2017
2018
Sales
P 600,000
P 699,600
Cost of Sales
360,000
Gross Profit P 240,000
380,160
P. 319,440
During 2018, the following transpired that affected net sales, cost of sales, which contributed in the
changes in gross margin.
1. Units sold in 2018 was 10% higher than 2017
2. Unit selling price in 2018 was 6% higher than 2017
3. Unit cost in 2018 was 4% lower than 2017
Required: Perform a Gross Margin Analysis under the (a) Two-way; (b) Three-Way; and (c) Four-way
method.
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