Profit and loss data for Lota & Romy, Inc. for 2019 and 2020 follow: Sales Cost...

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Profit and loss data for Lota & Romy, Inc. for 2019 and 2020 follow: Sales Cost of Sales Gross Profit REQUIRED: 2019 2020 Increase (Decrease) P2,688,000 P3,450,000 P762,000 1,920,000 2,760,000 840,000 P768,000 P690,000 P(78,000) 1. Prepare a statement/summary analyzing the variation in gross profit giving as much information as can be determined concerning factors responsible for the change, under each of the following independent assumptions: a. Total units sold in 2020 are 25% above units sold in 2019. b. Selling prices in 2020 are 20% above the selling prices in 2019. c. Cost prices in 2020 are 10% lower than the cost prices in 2019. d. No data are available relative to prices and volume changes. Profit and loss data for Lota & Romy, Inc. for 2019 and 2020 follow: Sales Cost of Sales Gross Profit REQUIRED: 2019 2020 Increase (Decrease) P2,688,000 P3,450,000 P762,000 1,920,000 2,760,000 840,000 P768,000 P690,000 P(78,000) 1. Prepare a statement/summary analyzing the variation in gross profit giving as much information as can be determined concerning factors responsible for the change, under each of the following independent assumptions: a. Total units sold in 2020 are 25% above units sold in 2019. b. Selling prices in 2020 are 20% above the selling prices in 2019. c. Cost prices in 2020 are 10% lower than the cost prices in 2019. d. No data are available relative to prices and volume changes.

Answer rating: 100% (QA)

Answer To analyze the variation in gross profit under each of the given assumptions we can calculate ... View the full answer