Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 20, Problem 20.17EX
Contribution margin analysis — sales
Select Audio Inc. sells electronic equipment. Management decided curly 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, the .sales increased by $31,875 from the planned level of $1,048,125. The following information is available from the accounting records for the year ended December 31.
- 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 $10, as planned?
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Chapter 20 Solutions
Financial & Managerial Accounting
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