14.

Contribution Margin AnalysisSales

The following data for Romero Products Inc. are available:

For the Year Ended December 31	Actual		Planned		DifferenceIncrease or (Decrease)
Sales	$8,360,000		$8,200,000		$160,000
Variable costs:
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.

Romero Products Inc.
Contribution Margin AnalysisSales
For the Year Ended December 31
Effect of change in sales:
Sales quantity factor	$
Unit price factor
Total effect of change in sales		$