Blueberry, Inc., sells computer 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, 2013, the sales increased by $17,500 from the planned level of $1,182,500. The following information is available from the accounting records for the year ended December 31, 2013:

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 $5, as planned?

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Increase or (Decrease) Actual Planned Sales Number of units sold Sales price Variable cost per unit $1,200,000 $17,500 5,000 $1,182,500 $(2.50) $25.00 $5.00 $27.50 $5.00