Question: Contribution margin analysissales Instructions Labels and Amount Descriptions Contribution Margin Analysis X Instructions The following data for Romero Products Inc. are available: 1 For the
Contribution margin analysissales
Instructions
Labels and Amount Descriptions
Contribution Margin Analysis
X
Instructions
The following data for Romero Products Inc. are available:
| 1 | For the Year Ended December 31 | Actual | Planned | Difference Increase or (Decrease) |
| 2 | Sales | $9,120,000.00 | $9,020,000.00 | $100,000.00 |
| 3 | Variable costs: |
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| 4 | Variable cost of goods sold | $3,363,000.00 | $3,157,000.00 | $206,000.00 |
| 5 | Variable selling and administrative expenses | 703,000.00 | 861,000.00 | (158,000.00) |
| 6 | Total variable costs | $4,066,000.00 | $4,018,000.00 | $48,000.00 |
| 7 | Contribution margin | $5,054,000.00 | $5,002,000.00 | $52,000.00 |
| 8 | Number of units sold | 38,000.00 | 41,000.00 |
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| 9 | Per unit: |
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| 10 | Sales price | $240.00 | $220.00 |
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| 11 | Variable cost of goods sold | 88.50 | 77.00 |
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| 12 | Variable selling and administrative expenses | 18.50 | 21.00 |
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Prepare an analysis of the sales quantity and unit price factors. 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.
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Labels and Amount Descriptions
| Labels | |
| December 31 | |
| 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 | |
| Amount Descriptions | |
| Sales quantity factor | |
| Total effect of changes in sales | |
| Unit cost factor | |
| Unit price factor | |
| Variable cost quantity factor |
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Contribution Margin Analysis
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Prepare an analysis of the sales quantity and unit price factors. 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. Score: 18/30 Contribution Margin Analysis-Sales For the Year Ended December 31 1Effect of changes in sales: 2 Sales quantity factor 3 Unit price factor Total effect of changes in sales
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