Question

Buy Best 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, 2015 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 31, 2015:


a. Prepare an analysis of the sales quantity and unit price factors.
b. 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, asplanned?


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  • CreatedJune 27, 2014
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