The following data for Romero Products Inc. are available:

For the Year Ended December 31	Actual	Planned	Increase or (Decrease)
Sales	$8,360,000	$8,200,000	$160,000
Less:
Variable cost of goods sold	$3,496,000	$3,280,000	$216,000
Variable selling and administrative expenses	760,000	902,000	(142,000)
Total variable costs	$4,256,000	$4,182,000	$74,000
Contribution margin	$4,104,000	$4,018,000	$86,000
Number of units sold	38,000	41,000
Per unit:
Sales price	$220	$200
Variable cost of goods sold	92	80
Variable selling and administrative expenses	20	22

For the Year Ended December 31	Actual	Planned	Increase or (Decrease)
Sales	$8,360,000	$8,200,000	$160,000
Less:
Variable cost of goods sold	$3,496,000	$3,280,000	$216,000
Variable selling and administrative expenses	760,000	902,000	(142,000)
Total variable costs	$4,256,000	$4,182,000	$74,000
Contribution margin	$4,104,000	$4,018,000	$86,000
Number of units sold	38,000	41,000
Per unit:
Sales price	$220	$200
Variable cost of goods sold	92	80
Variable selling and administrative expenses	20	22

Labels
Effect of changes in sales
Effect of changes in variable cost of goods sold
Effect of changes in variable selling and administrative expenses
For the Year Ended December 31
Amount Descriptions
Decrease in contribution margin from change in variable costs
Increase in contribution margin from change in variable costs
Sales quantity factor
Total effect of changes in variable cost of goods sold
Total effect of changes in selling and administrative expenses
Unit cost factor
Unit price factor
Variable cost quantity factor

Prepare a contribution analysis of the variable costs for Romero Products Inc. 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.

Romero Products Inc.

Contribution Margin AnalysisVariable Costs

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