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Select Audio Inc. Contribution Margin Analysis Sales For the Year Ended December...

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Select Audio Inc. Contribution Margin Analysis Sales For the Year Ended December 31 Effect of change in sales: Sales quantity factor Unit price factor Total effect of change in sales Difference in sales quantity x Planned sales price Sales quantity factor Difference in sales price x Actual units sold Sales quantity factor EX 20-17 Contribution margin analysis-sales Prinz A A EXCEL TEMPLATE Obj. 5 Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the sales increased by $31,875 from the planned level of $1,048,125. The following information is available from the accounting records for the year ended December 31. Actual Planned Increase or (Decrease) Sales Number of units sold Sales price Variable cost per unit $1,080,000 36,000 $30.00 $10.00 $1,048,125 32,250 $32.50 $10.00 $31,875 3,750 $ (2.50) A. Prepare an analysis of the sales quantity and unit price factors. Answer B. Did the price decrease generate sufficient volume to result in a net increase in contribution margin if the actual variable cost per unit was $10, as planned

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