14. Contribution Margin AnalysisSales The following data for Romero Products Inc. are available: ...
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Accounting
14.
Contribution Margin AnalysisSales
The following data for Romero Products Inc. are available:
| For the Year Ended December 31 | Actual | Planned | DifferenceIncrease or (Decrease) | |||
| Sales | $8,360,000 | $8,200,000 | $160,000 | |||
| Variable costs: | ||||||
| Variable cost of goods sold | $3,496,000 | $3,280,000 | $216,000 | |||
| Variable selling and administrative expenses | 760,000 | 902,000 | (142,000) | |||
| Total variable costs | $4,256,000 | $4,182,000 | $74,000 | |||
| Contribution margin | $4,104,000 | $4,018,000 | $86,000 | |||
| Number of units sold | 38,000 | 41,000 | ||||
| Per unit: | ||||||
| Sales price | $220 | $200 | ||||
| Variable cost of goods sold | 92 | 80 | ||||
| Variable selling and administrative expenses | 20 | 22 | ||||
Prepare an analysis of the sales quantity and unit price factors.
| Romero Products Inc. | ||
| Contribution Margin AnalysisSales | ||
| For the Year Ended December 31 | ||
| Effect of change in sales: | ||
| Sales quantity factor | $ | |
| Unit price factor | ||
| Total effect of change in sales | $ | |
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