The following data for Romero Products Inc. are available Difference- Increase o

Question

The following data for Romero Products Inc. are available Difference- Increase or (Decrease For the Year Ended December 31 Actual Planned Sales 3 Variable costs: 4 Variable cost of goods sold 200,000.00 9030,00000 $170,000.00 3,680,000.00 $3,440,000.00 Variable selling and administrative expenses 6 Total variable costs 7Contribution margin &Number; of units sold $240,000.00 17000.00 137,000.00) 000.00 $67,000.00 680,000.00 4,360,000.00 $4,257,000.00 $103 4,840,000.00 $4,773,000.00 40,000.00 43,000.00 Per unit: 10 Sales price 11Vrable cost of goods sold 2 Variable selling and administrative expenses 230.00 92.00 17.00 $210.00 80.00 19.00 Prepare a contribution margin analysis of the variable costs for Romero Products Inc. for the year ended December 31. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Explanation / Answer

Romeo Products Inc.

Romeo Products Inc.

Contribution Margin Analysis—Variable Costs For the Year Ended December 31 Effect of changes in variable costs of goods sold: Variable cost quantity factor (43000-40000)*80 240000 Unit cost factor (80-92)*40000 -480000 Total effect of change in variable cost of goods sold -240000 Effect of changes in variable selling and administrative expenses: Variable cost quantity factor (43000-40000)*19 57000 Unit cost factor (19-17)*40000 80000 Total effect of changes in selling and administrative expenses 137000 Decrease in contribution margin from change in variable costs -103000

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