Analyzing contribution margin changes. The Siena Company, which sells hard hats for construction, provided the following data for years 1 and 2:

What impact did the changes in sales volume and in sales price have on the contribution margin? (Hint: Compare the actual, flexible budget, and master budget portion of the profit variance analysis. Use Year 1 as the "Master Budget ")

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Sales Volume Sales Revenue Variable Costs.. Contribution Margin Year 1 Year 2 14,000 Hats 10,000 Hats $1,750,000 (1,470,000) $1,500,000 (1,050,000) $ 280,000 $ 450,000