Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin...

    

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Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin increased by $47.410 from the planned level of $1,323,600. The president of Farr Industries Inc. has expressed concern about such a small increase in contribution margin and has requested a follow-up report. The following data have been gathered from the accounting records for the year ended December 31: 2 Sales 3 Variable costs: 4 Variable cost of goods sold Variable selling and administrative expenses. Total variable costs 7 Contribution margin 8 Number of units sold 9 Per unit: 10 Sales price 11 Variable cost of goods sold 1) Variable selling and administrative expenses 6 Actual $2,780,640.00 Planned $144.00 58:00 15.00 $2,757,500.00 $1,119,980.00 $1,191,240.00 289,650.00 242,660.00 $1,409,630.00 $1,433,900.00 $1,371,010.00 $1,323,600.00 19,310.00 22,060.00 $125.00 54.00 11.00 Difference - Increase (Decrease) $23,140.00 $(71,260.00) 46,990,00 $(24,270.00) $47,410.00 Farr Industries Inc. manufactures only one product. For the year ended December 31, the contribution margin increased by $47.410 from the planned level of $1,323,600. The president of Farr Industries Inc. has expressed concern about such a small increase in contribution margin and has requested a follow-up report. The following data have been gathered from the accounting records for the year ended December 31: 2 Sales 3 Variable costs: 4 Variable cost of goods sold Variable selling and administrative expenses. Total variable costs 7 Contribution margin 8 Number of units sold 9 Per unit: 10 Sales price 11 Variable cost of goods sold 1) Variable selling and administrative expenses 6 Actual $2,780,640.00 Planned $144.00 58:00 15.00 $2,757,500.00 $1,119,980.00 $1,191,240.00 289,650.00 242,660.00 $1,409,630.00 $1,433,900.00 $1,371,010.00 $1,323,600.00 19,310.00 22,060.00 $125.00 54.00 11.00 Difference - Increase (Decrease) $23,140.00 $(71,260.00) 46,990,00 $(24,270.00) $47,410.00

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Contribution Margin Analysis Report for Farr Industries Inc for the year ended December 31 Sales Actual 278064000 Planned 275750000 Difference 2314000 ... View the full answer