The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the Sales division that the quantity sold in 2022 was 25% higher than in 2021 and that the production costs in 2022 were lower than that of the 2021 by 6%. The increase (decrease) in net sales due to volume factor or the Sales Volume Variance is a.(P312,500) b. P312,500 c.P194,000 d. (P194,000)
The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the Sales division that the quantity sold in 2022 was 25% higher than in 2021 and that the production costs in 2022 were lower than that of the 2021 by 6%. The increase (decrease) in net sales due to volume factor or the Sales Volume Variance is a.(P312,500) b. P312,500 c.P194,000 d. (P194,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the Sales division that the quantity sold in 2022 was 25% higher than in 2021 and that the production costs in 2022 were lower than that of the 2021 by 6%. The increase (decrease) in net sales due to volume factor or the Sales Volume Variance is
a.(P312,500)
b. P312,500
c.P194,000
d. (P194,000)
Transcribed Image Text:For the year ended December 31, 2021 and 2022 the following data were presented to
the management of Bulldogs Inc.:
Cost of Sales
P911,800
776,000
Net Sales
Gross Margin
2022
P1,363,000
P451,200
474,000
2021
1,250,000
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