The portion of the functional income statements of Brief Company for 2021 and 2020 are presented below:     2021  2020  Sales  P890,000  P800,000  Cost of goods sold    530,000    450,000  Gross margin    360,000    350,000           Assuming that effective January of 2021 the unit cost is higher by 6 percent, calculate the change in sales due to change in volume rounded to nearest thousands.  Group of answer choices  P85,000 Favorable  P88,000 Favorable  P85,000 Unfavorable  P88,000 Unfavorable

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The portion of the functional income statements of Brief Company for 2021 and 2020 are presented below: 

  

2021 

2020 

Sales 

P890,000 

P800,000 

Cost of goods sold 

  530,000 

  450,000 

Gross margin 

  360,000 

  350,000 

  

  

  

Assuming that effective January of 2021 the unit cost is higher by 6 percent, calculate the change in sales due to change in volume rounded to nearest thousands. 

Group of answer choices 

P85,000 Favorable 

P88,000 Favorable 

P85,000 Unfavorable 

P88,000 Unfavorable 

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