The following data are taken from the records of Bruce Inc.,

For Year Ended December 31
	Actual	Planned	Increase or (Decrease)
Sales	$31,2000	$32,5000	$(13,000)
Less:
Variable cost of goods sold	$169,200	$182,000	$(12,800)
Variable selling and administrative expenses	32,400	39,000	(6,600)
Total	$201,600	$221,000	$(19,400)
Contribution margin	$110,400	$104,000	$ 6,400
Number of units sold	120,000	130,000	(10,000)
Per unit:
Sales price	$2.60	$2.50	0.10
Variable cost of goods sold	1.41	1.40	0.01
Variable selling and administrative expenses	0.27	0.30	(0.03)

Labels
Effect of changes in sales
Effect of changes in selling and administrative expenses
Effect of changes in variable cost of goods sold
For the Year Ended December 31
Price factor
Quantity factor
Sales quantity factor
Unit cost factor
Amount Descriptions
Actual contribution margin
Decrease in number of units sold
Decrease in unit cost
Increase in unit cost
Increase in unit sales price
Number of units sold
Planned contribution margin
Planned sales price
Planned unit cost
Total effect of changes in sales
Total effect of changes in selling and administrative expenses
Total effect of changes in variable cost of goods sold

Prepare a contribution margin analysis report for the year ended December 31. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Bruce Inc.

Contribution Margin Analysis

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