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Question - The contribution margin of CPA Corporation for 2019 and 2020 are given below:
2019
2020
Sales
P8,000,000
P12,000,000
Less: Variable costs
6,000,000
8,000,000
Contribution margin
P2,000,000
P4,000,000
The number of units sold increased by 5%.
Required -
1. How much is the favorable sales price variance for the year 2020?
2. What is the favorable sales price variance ratio for the year 2020?
3. How much is the favorable sales quantity variance for the year 2020?
4. How much is the unfavorable variable cost price variance for 2020?
5. How much is the unfavorable cost quantity variance for the year 2020?
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