Question
ABC Coffee Company is concerned with its gross profit negating the increase of its sales. It presents the following data for two species of coffee,
ABC Coffee Company is concerned with its gross profit negating the increase of its sales. It presents the following data for two species of coffee, Aba and Roa, for 2020 and 2019:
| 2020 | 2019 |
| |||||
| Kilos | Price / Kg. | Amount | Kilos | Price / Kg. | Amount |
| |
Net Sales |
|
|
|
|
|
|
| |
| Aba | 13,000 | 390 | 5,070,000 | 11,500 | 400 | 4,600,000 |
|
| Roa | 11,000 | 360 | 3,960,000 | 12,000 | 330 | 3,960,000 |
|
Total |
|
| 9,030,000 |
|
| 8,560,000 |
| |
Cost of Goods Sold | ||||||||
| Aba | 13,000 | 320 | 4,160,000 | 11,500 | 350 | 4,025,000 |
|
| Roa | 11,000 | 300 | 3,300,000 | 12,000 | 240 | 2,880,000 |
|
Total |
|
| 7,460,000 |
|
| 6,905,000 |
| |
| Gross profit |
|
| 1,570,000 |
|
| 1,655,000 |
|
Calculate and analyze the gross profit variance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started