Contribution Margin Analysis-Sales 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 $22,600 from the planned level of $1,150,000. The following information is available from the accounting records for the year ended December 31. Actual Planned Increase or ( Decrease) Sales $1,172,600 $1,150,000 $22,600 Number of units sold 28,600 25,000 3,600 Sales price $41 $46 $ (5) Variable cost per unit $7 $7 a. Prepare an analysis of the sales quantity and unit price factors. Use a minus sign for any negative amounts. Select Audio Inc. Contribution Margin Analysis-Sales For the Year Ended December 31 Effect of changes in sales: Sales quantity factor Unit price factor Total effect of changes in sales b. Did the price decrease generate sufficient volume to result in a net increase in contribution margin if the actual variable cost per unit was $7, as planned? No Feedback Check My Work b. More units than planned at a lower price contribute less to contribution margin. Learning Objective 5