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 $31,875 from the planned level of $1,048,125. The following information is available from the accounting records for the year ended December 3

Category	Actual	Planned	Increase (Decrease)
Sales	$1,100,000	$1,050,500	$49,500
Number of units sold	38,000	32,250	5,750
Sales price	30.00	32.00	(2.00)
Variable cost per unit	12.00	12.00	0

1. Analyze the sales quantity and price factors. If you were a manager would you say that the companys performance has improved? Why or why not?
2. Did the price decrease generate sufficient volume to result in a net increase in contribution margin if the actual variable cost per unit was $10, as planned?