ontribution Margin Analysis—Sales The following data for Romero Products Inc. ar

Question

ontribution Margin Analysis—Sales

The following data for Romero Products Inc. are available:

Prepare an analysis of the sales quantity and unit price factors.

For the Year Ended December 31

Actual

Planned Difference—Increase or (Decrease) Sales $2,787,400 $2,516,800 $270,600 Variable costs: Variable cost of goods sold $1,484,200 $1,337,600 $146,600 Variable selling and administrative expenses 289,600 281,600 8,000 Total variable costs $1,773,800 $1,619,200 $154,600 Contribution margin $1,013,600 $897,600 $116,000 Number of units sold 18,100 17,600 Per unit: Sales price $154 $143 Variable cost of goods sold 82 76 Variable selling and administrative expenses 16 16

Explanation / Answer

Prepare an analysis of the sales quantity and unit price factors.

Romero Products Inc. Contribution Margin Analysis—Sales For the Year Ended December 31 Effect of changes in sales Sales quantity factor (18100-17600)*143 71500 F Unit price factor (154-143)*18100 199100 F Total effect of changes in sales 270600 F

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.