Explanation:
Net sales are favorable because the sales increase each year from the base year.
Cost of goods sold is unfavorable because the cost grows faster than sales.
Gross profit is unfavorable because it should at least grow as fast as sales.
Answer:
The amount of net income for January was $24,100
Explanation:
Revenues from sales $115,100 (for this analysis is not important if the sales were in cash or on credit)
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Cost of goods sold $48,000
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Gross profit $67,100
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Salaries, rent, supplies, advertising, other expenses and monthly utilities (it is not important for this analysis if all the exenses were paid) -$43,000
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Net income $24,100