Contribution Margin Analysis-Variable Costs The following data for Romero Products Inc. are available: Difference- Increase or (Decrease) For the Year Ended December 31 Sales Actual Planned $2,068,500 $2,009,000 $59,500 Variable costs: Variable cost of goods sold Variable selling and administrative expenses $1,103,200 216,700 $1,319,900 $748,600 $1,066,000 246,000 $1,312,000 $697,000 $37,200 (29,300) $7,900 $51,600 Total variable costs Contribution margin Number of units sold 19,700 20,500 Per unit: Sales price $105 Variable cost of goods sold Variable selling and administrative expenses Prepare a contribution margin analysis of the variable costs for Romero Products Inc. for the year ended December 31. Romero Products Inc. Contribution Margin Analysis-Variable Costs For the Year Ended December 31 Effect of changes in variable costs of goods sold: Variable cost quantity factor 41,600 Unit cost factor -78,800 Total effect of change in variable cost of goods sold -37,200 Effect of changes in variable selling and administrative expenses: Variable cost quantity factor 9,600 19,700 Unit cost factor 29,300 Total effect of changes in selling and administrative expenses -7,900 Decrease in contribution margin from change in variable costs