Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Contribution Margin AnalysisSales The following data for Romero Products Inc. are available: For the Year Ended December 31 Actual Planned DifferenceIncrease or (Decrease) Sales $1,904,000
-
Contribution Margin AnalysisSales
The following data for Romero Products Inc. are available:
For the Year Ended December 31 Actual Planned DifferenceIncrease or (Decrease) Sales $1,904,000 $1,720,500 $183,500 Variable costs: Variable cost of goods sold $1,008,000 $914,500 $93,500 Variable selling and administrative expenses 192,000 186,000 6,000 Total variable costs $1,200,000 $1,100,500 $99,500 Contribution margin $704,000 $620,000 $84,000 Number of units sold 16,000 15,500 Per unit: Sales price $119 $111 Variable cost of goods sold 63 59 Variable selling and administrative expenses 12 12 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 changes in sales: Sales quantity factor $ Unit price factor Total effect of changes in sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started