Mathews Company manufactures only one product. For the yearended December 31, the contribution margin increased by $41,616from the planned level of $764,784. The president of MathewsCompany has expressed some concern about this increase and hasrequested a follow-up report.

The following data have been gathered from the accountingrecords for the year ended December 31:

	Actual		Planned		Difference—Increase(Decrease)
Sales	$1,555,200		$1,513,296		$41,904
Variable costs:
Variable cost of goods sold	$590,400		$618,336		$(27,936)
Variable selling and administrative expenses	158,400		130,176		28,224
Total variable costs	$748,800		$748,512		$(288)
Contribution margin	$806,400		$764,784		$41,616
Number of units sold	14,400		16,272
Per unit:
Sales price	$108		$93
Variable cost of goods sold	41		38
Variable selling and administrative expenses	11		8

Required:

1. Prepare a contribution margin analysisreport for the year ended December 31.

Mathews Company
Contribution Margin Analysis
For the Year Ended December 31
Planned contribution margin		$
Effect of changes in sales:
Sales quantity factor	$
Unit price factor
Total effect of changes in sales
Effect of changes in variable cost of goods sold:
Variable cost quantity factor	$
Unit cost factor
Total effect of changes in variable cost of goods sold
Effect of changes in selling and administrative expenses:
Variable cost quantity factor	$
Unit cost factor
Total effect of changes in selling and administrativeexpenses
Actual contribution margin		$