For the Year Ended December 31 Sales Less Actual Planned (Decrease) $2,375,100 $

ID: 2556934 • Letter: F

Question

For the Year Ended December 31 Sales Less Actual Planned (Decrease) $2,375,100 $2,299,000 $76,100 $46,400 7,200 $39,200 $36,900 Variable cost of goods sold $1,258,600 $1,212,200 250,800 $1,502,200 $1,463,000 $872,900 $836,000 20,900 Variable selling and administrative expenses 243,600 Total variable costs Contribution margirn Number of units sold Per unit: 20,300 Sales price Variable cost of goods sold Variable selling and administrative expenses $117 62 12 $110 58 12 Prepare an analysis of the sales quantity and unit price factors. Gardot Products 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

Explanation / Answer

Answer

Quantity factor (A)

[20300 units – 20900 units] x $110

$(66,000)

Unit Price factor (B)

[$117 - $110] x 20300 units

$142,100

Total Effect of change in Sales (A+B)

$76,100