Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Profit and loss data for Lota & Romy, Inc. for 2019 and 2020 follow: Sales Cost of Sales Gross Profit REQUIRED: 2019 2020 Increase
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer To analyze the variation in gross profit under each of the given assumptions we can calculate ...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