The president of National Co., after being informed that the 2021 selling price was 6% lower than 2020, would like to know other factors that changes the gross margin as shown below. 2021 2020 INet Sales Cost of Sales Gross Margin P420,000.00 P243,600.00 P176.400.00 P426,384.00 P276,242.40 P150.141.60

Q: which of the following occurs if a company decreases its selling price per unit? a. net income…

A: The contribution margin is calculated as difference between sales and variable costs. The…

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: The margin of safety can be defined as the amount by which sales can decrease before losses are…

A: Total sales of a company can be divided into Margin of safety sales and break even sales.

Q: How does the sales mix affect the calculation of the break-even point?

A: Meaning of sales mix When a company sells two or more products, then the concept of sales mix…

Q: Net sales minus cost of good sold is equal to cost of ending inventory.   T/F

A: The ending inventory is the amount of inventory left with business at year end.

Q: What is the formulae to find New sales level?

A: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.        or

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A: Purchases returns are products that are returned by a company to its suppliers due to various…

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A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…

Q: How would I go about finding the previous reported sales, when I have the current sales and the…

A: Given: Current Sales Percentage increase in Sales

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A: Favorable is the condition that is positive for a business. This implies that the variance or the…

Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group…

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Q: Inventory Turnover Ratio shows the speed at which the Sales will be converted into cash. Select one:…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: A sales discount is added in calculating net sales

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Q: For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies: a.…

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Q: Explain what the significance of having a high/low Price-to-Book ratio means about the company's

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Q: ending inventory increases therefore net income under AC and VC will be same Select one: True False

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Q: Margin of Safety (MOS) in dollars indicates how much sales must decrease before the company will be…

A: Margin of safety is the excess of actual revenue over its break even revenue.

Q: Sales Returns Which of the following statements is true relating to the allowance for sales returns?…

A: Sales return & allownace :— It is the amount of goods returned by customer due to receive of…

Q: The operating break-even sales level is not sensitive to which of the following variables? fixed…

A: Operating break even sales level-It is a point at which a company's total revenue equals its total…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment measures the net earned on the assets employed by the business.

Q: A negative trend in Gross Margin may indicate that Cost of Sales is decreasing.  Group of answer…

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Q: What is the relationship between revenue and net income on the Income Statement? As contribution…

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Q: A manager who wants to determine the percentage impact on income of a given percentage change in…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: By modifying the break-even equation, a company is able to determine the sales required to earn a…

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Q: To arrive at gross profit, cost of goods sold is subtracted from the total of sales minus sales…

A: Gross profit is the profit that the company earns after deducting the cost of the goods sold to the…

Q: If sales are measured and dollars the unit on the standard deviation of sales is dollars true or…

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Q: What is the break-even sales increase? Interpret.

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Q: Explain the drawing 21% Financails 50% Sales Expenes

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Q: Which inventory method will result in lower net income in a period of rising prices? Which inventory…

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Q: s it always higher in cost of goods sold in Weighted average compared to FIFO?

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Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

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Q: Fluctuations in unit volume, changes in unit price or unit cost of goods sold and modifications in…

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Q: Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select…

A: Introduction: Inventory turnover ratio is one of the financial ratios which is computed by any…

Q: 1. Which of the following shows the degree of operating leverage? The percentage change in the sales…

A: The degree of financial leverage (DFL) is a financial metric that measures the sensitivity of a…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share