Sales variations analysis 37. Garfield Corporation, which.sells a single product, provided the following data fromn its income statements for the calendar years, 20CY and 20PY: 20CY Sales (150,000 units) Cost of goods sold Gross profit P750,000 525.000 P225.000 Sales (180,000 units) Cost of goods sold Gross profit 20PY (Base year) P720,000 575.000 P145.000 In an analysis of variation in gross profit between the two years, what would be the effects of changes in sales price and sales volume? Sales price P150,000 favorable b. P150,000 unfavorable P180,000 favorable d. Sales volume P120,00 unfavorable P120,000 favorable P150,000 unfavorable P150,000 favorable a. с. P180,000 unfavorable (aicpa)

Sales variations analysis 37. Garfield Corporation, which.sells a single product, provided the following data fromn its income statements for the calendar years, 20CY and 20PY: 20CY Sales (150,000 units) Cost of goods sold Gross profit P750,000 525.000 P225.000 Sales (180,000 units) Cost of goods sold Gross profit 20PY (Base year) P720,000 575.000 P145.000 In an analysis of variation in gross profit between the two years, what would be the effects of changes in sales price and sales volume? Sales price P150,000 favorable b. P150,000 unfavorable P180,000 favorable d. Sales volume P120,00 unfavorable P120,000 favorable P150,000 unfavorable P150,000 favorable a. с. P180,000 unfavorable (aicpa)

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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please provide correct option
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A comparative income statement follows for Martine Ltd. of Montreal: MARTINE LTD. Comparative Income Statement For the Years Ended October 31, Year 1 and Year 2 Year 2 Year 1 Sales $ 8,050,000 $ 6,050,000 Less: Cost of goods sold 5,095,650 3,605,800 Gross margin 2,954,350 2,444,200 Less: Operating expenses: Selling expenses 1,529,500 1,131,350 Administrative expenses 756,700 726,000 Total expenses 2,286,200 1,857,350 Net operating income 668,150 586,850 Less: Interest expense 136,850 114,950 Net income before taxes $ 531,300 $ 471,900 Members of the company's board of directors are surprised to see that net income increased by only $59,400 when sales increased by $2,000,000. Required: 1. Express each year’s income statement in common-size percentages. (Round your answers to 1 decimal place.)