I. Manly Company has the following data available for gross profit analysis :Product AProduct BProduct CP45,00033,7507,50020x1TotalP510,000SalesP225,000Cost of sales 180,00022,500P240,000210,00030,000423,75060,000UnitsProduct AP360,000Cost of sales 270,00030,000Product BP270,000Product CTotalP660,00020x2SalesP30,00024,0006,000225,000519,00066,000Units30,000Required: Prepare a statement accounting for variation in gross profit taking into account thesales mix factor.

Manly Company has three products Product A, Product B and Product C So it is provided in the…

I. Manly Company has the following data available for gross profit analysis : Product A Product B Product C P45,000 33,750 7,500 20x1 Sales Total P510,000 423,750 60,000 P225,000 Cost of sales 180,000 P240,000 210,000 30,000 Units 22,500 20x2 Product A Product B Product C Total P660,000 519,000 Sales P360,000 Cost of sales 270,000 P270,000 225,000 30,000 P30,000 24,000 6,000 Units 30,000 66,000 Required: Prepare a statement accounting for variation in gross profit taking into account the sales mix factor.

I. Manly Company has the following data available for gross profit analysis : Product A Product B Product C P45,000 33,750 7,500 20x1 Sales Total P510,000 423,750 60,000 P225,000 Cost of sales 180,000 P240,000 210,000 30,000 Units 22,500 20x2 Product A Product B Product C Total P660,000 519,000 Sales P360,000 Cost of sales 270,000 P270,000 225,000 30,000 P30,000 24,000 6,000 Units 30,000 66,000 Required: Prepare a statement accounting for variation in gross profit taking into account the sales mix factor.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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