The Board of Directors of M/S KarimCorporation were presented following data from the Profit & Loss Account of year 2020 and year 2019

Accordinglythe GP % has gone down by around 10 % where as GP in absolute amount has decreased by Rs 10 000:

20192020

Sales (net) 120,000 130,000

Cost of goods sold 95,000 115,000

Gross profit 25,000 15,000

GP %20.83 %11.50%

The details of Sales and cost product wise is as follows:

19A SALES19A COST OF GOODS SOLD

PRODUCTQTYUnit PriceTotal Unit Cost Total

X ...........10,000 7.0070,000 5.0050,000

Y ...........5,000 6.0030,000 3. 0015,000

Z ...........20,000 1.00 20,000 1.5030,000

35,000Total sales120,000 Total cost95,000

19B SALES19B COST OF GOODS SOLD

PRODUCTQTYUnit PriceTotal Unit Cost Total

X ...........12,000 7.0084,000 4.5054,000

Y ...........4,000 4.0016,000 4.0016,000

Z ...........15,000 2.0030,000 3.0045,000

31,000 Total sales130,000 Total cost115,000

 

 

Required : 

Analysis and suggest reasons and work out following :

 

I.Sales Price variance

II.Sales volume variances

III.Total Sales Variance

IV.Cost Price variance

V.Cost volume variances

VI.Total cost variance