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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.

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