# Gross Profit Analysis

Gross profit analysis is important when the number of sales in continuously increasing or changing. Gross profit analysis has basis on the standard costs & budget on company’s performance. Gross profit analysis can provide better picture of financial trading activities of company.

Gross Profit Analysis Solved Problems: Learning Objective: Calculate sales price variance, sales volume variance, cost price variance, cost volume variance, sales mix variance, and final sales volume variance. Problem 1: A cost analyst of the Memphis Company has prepared a monthly gross profit analysis,

Gross Profit Analysis-Questions and Answers: Questions: Why is the gross profit figure significant? What causes changes in the gross profit? Explain “product mix” or “sales mix.” By what methods can a change in the gross profit figure be analyzed? Describe how the sales price

Gross Profit Analysis Based on the Previous Year’s Figures: As the basis for illustrating the gross profit analysis using the previous year’s figures, the following gross profit section of a company’s operating statements for 19A and 19B are presented. 19A 19B Changes Sales (net)

Gross Profit (GP) Analysis Case Study: Gross Profit analysis of time sharing computer programs: The senior system analysis of Tyrene, Inc. Bob Canedy, developed in his spare time three unique packages of computer programs: Package 1, inventory control; Package 2, sales analysis; Package 3;

Gross Profit Analysis Based on Budgets and Standard Costs: As the basis for illustrating the analysis of gross profit using budgets and standard costs, three financial statements for a company are presented: The budgeted income statement prepared at the beginning of the period The