Lucy merchandising company sells household appliances.Lucy determines her selling price by adding a 40% mark up to the cost of merchandise.During the past 2 years, she concentrated only on three types of appliances: television sets, mini components and washing machines.Sales volume and cost data for 2019 and 2018 are as follows:

20192018

Units soldSelling priceunits soldselling price

Television sets55014,00060011,998

Mini components7005,8806505,194

Washing machines4007,0003506,398

Required:

1.Compute the total gross profit variance of Lucy merchandising company from the three products in 2019 and 2018 that is to be analyzed and accounted for