The following data relate to National Company for the year just ended: P750,000 Sales revenue Cost of goods sold: Variable portion Fixed portion 40% of sales 110,000 4% of sales Variable selling and administrative cost Fixed selling and administrative cost Net income after tax (30% tax rate) 75,000 P101,500 National Company's variable costing income statement would reveal a contribution margin of P340,000. National Company's variable-costing income statement would reveal a gross margin of P340,000. National Company's absorption-costing income statement would reveal a contribution margin of P420,000. National Company's absorption-costing income statement would reveal a gross margin of P420,000. National Company's absorption costing income statement would reveal a gross margin of P340,000.

The following data relate to National Company for the year just ended: P750,000 Sales revenue Cost of goods sold: Variable portion Fixed portion 40% of sales 110,000 4% of sales Variable selling and administrative cost Fixed selling and administrative cost Net income after tax (30% tax rate) 75,000 P101,500 National Company's variable costing income statement would reveal a contribution margin of P340,000. National Company's variable-costing income statement would reveal a gross margin of P340,000. National Company's absorption-costing income statement would reveal a contribution margin of P420,000. National Company's absorption-costing income statement would reveal a gross margin of P420,000. National Company's absorption costing income statement would reveal a gross margin of P340,000.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...

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