Vargross Company presented the following data for analysis affecting its gross profit. The company is selling two products, Avon and Bona 2021 2020 Net Sales 228,000 175,000 Cost of Sales 105,000 70,000 128,400 Gross Margin 99,600 Additional data: 2021 2020 Items Avon Bona Avon Bona Units sold 12,000 16,000 10,000 15,000 Unit selling price 1.00ו 6.00 10.00 5.00 Unit costs 6.30 3.30 6.00 3.00 Unit GP 4.70 2.70 4.00 2.00

Vargross Company presented the following data for analysis affecting its gross profit. The company is selling two products, Avon and Bona 2021 2020 Net Sales 228,000 175,000 Cost of Sales 105,000 70,000 128,400 Gross Margin 99,600 Additional data: 2021 2020 Items Avon Bona Avon Bona Units sold 12,000 16,000 10,000 15,000 Unit selling price 1.00ו 6.00 10.00 5.00 Unit costs 6.30 3.30 6.00 3.00 Unit GP 4.70 2.70 4.00 2.00

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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Question

Determine the following

Sales price variance

Cost price variance

Quantity variance

Total gross profit variance

Vargross Company presented the following data for analysis affecting
its gross profit. The company is selling two products, Avon and Bona
2021
2020
Net Sales
228,000
175,000
Cost of Sales
128,400
99,600
105,000
Gross Margin
70,000
Additional data:
2021
2020
Items
Avon
Bona
Avon
Bona
Units sold
12,000
16,000
10,000
15,000
Unit selling price
Unit costs
11.00
6.00
10.00
5.00
6.30
3.30
6.00
3.00
Unit GP
4.70
2.70
4.00
2.00
--------------

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