GROSS PROFIT

19A 19B
(Previous Year) (Current Year) Change
Sales (net) 120,000 140,000 20,000 Sales Price Variance
C.G.S. 100,000 110,000 10,000 Actual
Gross Profit 20,000 30,000 10,000 Product Quantity/Volume
X 10,000
PREVIOUS YEAR/BASE/BUDGET/STANDARD Y 4,000
Product Quantity/Volume USP/UC Amount/Value Z 20,000
Sales Sales(net) 34,000
X 8,000 5.000 40,000 Actual
Y 7,000 4.000 28,000 Product Quantity/Volume
Z 20,000 2.600 52,000 X 10,000
Sales(net) 35,000 120,000 Y 4,000
C.G.S Z 20,000
X 8,000 4.000 32,000 Sales(net) 34,000
Y 7,000 3.500 24,500 Sales Price Variance
Z 20,000 2.175 43,500
Sales(net) 35,000 100,000 Actual Sales
Gross Profit 20,000 Actual Sales at base year prices
Sales Price Variance
CURRENT YEAR/ACTUAL
Product Quantity/Volume USP/UC Amount/Value
Sales Cost Price Variance
X 10,000 6.600 66,000 Actual
Y 4,000 3.500 14,000 Product Quantity/Volume
Z 20,000 3.000 60,000 X 10,000
Sales(net) 34,000 140,000 Y 4,000
C.G.S Z 20,000
X 10,000 4.000 40,000 Sales(net) 34,000
Y 4,000 3.500 14,000 Actual
Z 20,000 2.800 56,000 Product Quantity/Volume
Sales(net) 34,000 110,000 X 10,000
Gross Profit 30,000 Y 4,000
Z 20,000
Sales(net) 34,000
Cost Price Variance

Actual sales at base year costs

Actual cost of sales
Cost Price Variance
 GROSS PROFIT ANALYSIS

SALES VARIANCES
e Sales Volume Variance
Actual Actual Base
USP Amount/Value Product Quantity/Volume USP Amount/Value
6.600 66,000 X 10,000 5.000 50,000
3.500 14,000 Y 4,000 4.000 16,000
3.000 60,000 Z 20,000 2.600 52,000
140,000 Sales(net) 34,000 118,000
Base Base Base
USP Amount/Value Product Quantity/Volume USP Amount/Value
5.000 50,000 X 8,000 5.000 40,000
4.000 16,000 Y 7,000 4.000 28,000
2.600 52,000 Z 20,000 2.600 52,000
118,000 Sales(net) 35,000 120,000
Sales Price Variance 22,000 Sales Volume Variance -2,000

140,000 Actual Sales at base year prices 118,000

118,000 Previous/Base year sales 120,000
Sales Price Variance 22,000 Sales Volume Variance -2,000

COST VARIANCES
Cost Volume Variance
Actual Actual Base
UC Amount/Value Product Quantity/Volume UC Amount/Value
4.000 40,000 X 10,000 4.000 40,000
3.500 14,000 Y 4,000 3.500 14,000
2.800 56,000 Z 20,000 2.175 43,500
110,000 Sales(net) 34,000 97,500
Base Base Base
UC Amount/Value Product Quantity/Volume UC Amount/Value
4.000 40,000 X 8,000 4.000 32,000
3.500 14,000 Y 7,000 3.500 24,500
2.175 43,500 Z 20,000 2.175 43,500
97,500 Sales(net) 35,000 100,000
Cost Price Variance -12,500 Cost Volume Variance 2,500

97,500 Base year cost of sales 100,000

110,000 Actual sales at base year costs 97,500
Cost Price Variance -12,500 Cost Volume Variance 2,500
 EXPLANATION OF CHANGE IN GROSS PROFIT

Sales Price Variance 22,000

Sales Volume Variance -2,000 Sales Mix Variance
Cost Volume Variance 2,500
Net Volume Variance 500 Product
Cost Price Variance -12,500 X
Increase in Gross Profit 10,000 Y
Z
Sales(net)
Average gross profit of base year 0.5714285714
Product
X
CHECK Y
Sales Mix Variance 1,071 Z
Final Sales Volume Variance -571 Sales(net)
Net Volume Variance 500

Actual sales at base gross profit

Actual sales at average gross profit

Actual sales at base year sales prices

Actual sales at base year cost
Actual sales at base gross profit
Actual sales at average gross profit

CHECK
Actual Base Year Sales
Product Quantity/Volume Quantity/Volume % age
X 10,000 8,000 0.2286
Y 4,000 7,000 0.2000
Z 20,000 20,000 0.5714
Total 34,000 35,000
 Final Sales Volume Variance
Actual Actual Base
Quantity/Volume Mix Unit GP Amount/Value Product
10,000 10,000 1.000 10,000 X
4,000 4,000 0.500 2,000 Y
20,000 20,000 0.425 8,500 Z
34,000 34,000 20,500 Sales(net)
Actual Base Base
Quantity/Volume Mix Unit GP Amount/Value Product
10,000 7,771 1.000 7,771 X
4,000 6,800 0.500 3,400 Y
20,000 19,429 0.425 8,257 Z
34,000 34,000 19,429 Sales(net)
Sales Mix Variance 1,071

20,500 Actual sales at average gross profit

e gross profit #REF! 19,429 Base year gross profit
Sales Mix Variance 1,071

ar sales prices 118,000 Actual sales at average gross profit

97,500 Base year sales
20,500 Base year cost of sales
e gross profit 19,429 Base year gross profit
Sales Mix Variance 1,071

CHECK CH
Actual sales at Base Mix Difference
Unit GP Base YearAmount Actual sales (in units)
Amount/Value Base year sales (in units)
7,771 2,229 1.00 2,229 Difference
6,800 -2,800 0.50 -1,400
19,429 571 0.43 243
34,000 0 1,071
riance
Actual Base Base
Quantity/Volume Mix Unit GP Amount/Value
10,000 7,771 1.000 7,771
4,000 6,800 0.500 3,400
20,000 19,429 0.425 8,257
34,000 19,429
Base Base Base
Quantity/Volume Mix Unit GP Amount/Value
8,000 8,000 1.000 8,000
7,000 7,000 0.500 3,500
20,000 20,000 0.425 8,500
35,000 35,000 20,000
Final Sales Volume Variance -571

e gross profit 19,429

20,000
Final Sales Volume Variance -571

e gross profit 19,429

120,000
100,000
20,000
Final Sales Volume Variance -571

CHECK
34,000
35,000
-1,000
Final Sales Volume Variance -571
 RECAPITULATION OF VARIANCES

Gains/Favourable Variances
Gain due to increase sales price 22,000
Gain due to change in sales mix 1,071
Total Gains 23,071
Losses/Unfavourable Variances
Loss due to increase in costs -12,500
Loss due to decrease in units sold -571
Total Losses -13,071
Increase in Gross Profit 10,000
FIXED 100000
PRODUCTION 10000
FIXED OH RATE 10

ACTUAL PRODICTION11000
110000