• The quantity factor tells us how much additional revenue changed for the additional quantity sold at the planned price. The price factor tells us how much revenue changed on actual total sales due to the price being different than planned.

Edna's Chocolates had planned to sell chocolate-covered strawberries for $3.00 each. Due to various factors, the actual price was $2.75. Edna's was able to sell 1,000 more strawberries than the anticipated 4,000. What is (1) the quantity factor and (2) the price factor for sales?

• Johnson's Plumbing's fixed costs are $700,000 and the unit contribution margin is $17. What amount of units must be sold in order to realize an operating income of $100,000?

• Harley Company has sales of $500,000, variable costs are 75% of sales, and operating income is $40,000. What is Harley's operating leverage?

• Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units were started during the period. 15,000 units were completed during the period, and 1,700 units were 80% completed at the end of the period. All materials are added at the beginning of the process. Material cost was $15,400, direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the weighted average method is used to cost inventories was ___.