Contribution Margin AnalysisSales

Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the sales increased by $18,400 from the planned level of $893,000. The following information is available from the accounting records for the year ended December 31.

	Actual	Planned	Increase or (Decrease)
Sales	$911,400		$893,000		$18,400
Number of units sold	21,700		19,000		2,700
Sales price	$42		$47		$(5)
Variable cost per unit	$7		$7		$0

Question Content Area

a. make an analysis of the sales quantity and unit price factors. Use a minus sign for any negative amounts.

Effect of changes in sales:
Sales quantity factor	$ fill in the blank ______
Unit price factor	fill in the blank _______
Total effect of changes in sales		$fill in the blank ______