Contribution margin analysis—sales obj. 5 The following data for Romero Products Inc. are available:

For the Year Ended December 31 Actual Planned Difference—

Increase or

(Decrease)

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,360,000 $8,200,000 $160,000 Less:

Variable cost of goods sold . . . . . . . . . . . . . . . . . . . . . . $3,496,000 $3,280,000 $216,000 Variable selling and administrative expenses . . . . 760,000 902,000 (142,000)

Total variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,256,000 $4,182,000 $ 74,000 Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,104,000 $4,018,000 $ 86,000 Number of units sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000 41,000 Per unit:

Sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $220 $200 Variable cost of goods sold . . . . . . . . . . . . . . . . . . . . . . 92 80 Variable selling and administrative expenses . . . . 20 22 Prepare an analysis of the sales quantity and unit price factors.