Compute the total gross profit variance of Lucy company

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Question - Lucy merchandising company sells household appliances. Lucy determines her selling price by adding a 40% mark up to the cost of merchandise. During the past 2 years, she concentrated only on three types of appliances: television sets, mini components and washing machines. Sales volume and cost data for 2019 and 2018 are as follows:

 

2019

2018

 

Units sold

Selling price

Units sold

Selling price

Television sets

550

14,000

600

11,998

Mini components

700

5,880

650

5,194

Washing machines

400

7,000

350

6,398

Required - Compute the total gross profit variance of Lucy merchandising company from the three products in 2019 and 2018 that is to be analyzed and accounted?

Reference no: EM132755895

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