Exercise 20-18

Variable Costing for Management Analysis Warren / Reeve / Duchac Exercise 20-18 solution

Contribution margin analysis—sales
The following data for Ergonomic Products Inc. are available:

Prepare an analysis of the sales quantity and unit price factors. Use the minus sign to indicate any decrease.

Effect of change in sales:
Sales quantity factor $-211,200
Unit price factor 371,200
Total effect of change in sales $160,000