Prepare a profit variance statement from the above data.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 57BE
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Sales
Prime cost of sales
Variable Overheads
Fixed expenses
PROFIT
(In lakhs)
31-3-2014
₹
120
80
20
15
5
31-3-2015
₹
129.6
91.1
24.0
18.5
(4.0)
During 2014-15, average prices increased over these of the previous years
(1) 20% in case of sales (2) 15% in case of prime cost (3) 10% in case of Overheads.
Prepare a profit variance statement from the above data.
Transcribed Image Text:Sales Prime cost of sales Variable Overheads Fixed expenses PROFIT (In lakhs) 31-3-2014 ₹ 120 80 20 15 5 31-3-2015 ₹ 129.6 91.1 24.0 18.5 (4.0) During 2014-15, average prices increased over these of the previous years (1) 20% in case of sales (2) 15% in case of prime cost (3) 10% in case of Overheads. Prepare a profit variance statement from the above data.
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