Contribution Margin Analysis Mathews Company manufactures only one product. For the year ended December 31, the contribution margin decreased by $126,000 from the planned level of $540,000. The president of Mathews Company has expressed some concern about this decrease and has requested a follow-up report. The following data have been gathered from the accounting records for the year ended December 31: Actual $2,277,000 Planned $2,070,000 Difference, Increase (Decrease) $207,000 Sales Variable costs: Variable cost of goods sold $1,035,000 $990,000 $45,000 Variable selling and administrative expenses 288,000 828,000 $1,863,000 540,000 $1,530,000 Total variable costs $333,000 Contribution margin $414,000 $540,000 $(126,000) Number of units sold 34,500 30,000 Per unit: Sales price $66 $69 Variable cost of goods sold 30 Variable selling and administrative expenses 24 1. Prepare a contribution margin analysis report for the year ended December 31. Mathews Company Contribution Margin Analysis For the Year Ended December 31 Planned contribution margin Effect of changes in sales: Sales quantity factor Unit price factor Total effect of changes in sales Effect of changes in variable cost of goods sold: Variable cost quantity factor Unit cost factor Total effect of changes in variable cost of goods sold Effect of changes in selling and administrative expenses: Variable cost quantity factor Unit cost factor Total effect of changes in selling and administrative expenses Actual contribution margin