Contribution margin analysis focuses on explaining the differences between planned and actual contribution margins, considering the quantity factor and the unit price factor. After reviewing the data on the Contribution Margin Data panel, complete the following contribution margin analysis. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Saxon, Inc. Contribution Margin Analysis For the Year Ended December 31 1 Planned contribution margin 2 Effect of changes in sales: 3 Sales quantity factor 4 Unit price factor 5 Total effect of changes in sales 6 Effect of changes in variable cost of goods sold: 7 Variable cost quantity factor 8 Unit cost factor 9 Total effect of changes in variable cost of goods sold 10 Effect of changes in selling and administrative expenses: 11 Variable cost quantity factor 12 Unit cost factor 13 Total effect of changes in selling and administrative expenses 14 Actual contribution margin For planning and control purposes, managers often compare planned and actual contribution margin. Variable costing is used as a basis for such analyses. Examine the following contribution margin data, and then complete the Contribution Margin Analysis panel. Saxon, Inc. Contribution Margin Data Schedule Actual Planned Sales $1,125,000 $1,190,000 Variable cost of goods sold $450,000 $462,000 Variable selling and administrative expenses 210,000 154,000 Total $660,000 $616,000 Contribution margin $465,000 $574,000 Number of units sold 15,000 14,000 Per unit: Sales price $75.00 $85.00 Variable cost of goods sold 30.00 33.00 Variable selling and administrative expenses 14.00 11.00
Contribution margin analysis focuses on explaining the differences between planned and actual contribution margins, considering the quantity factor and the unit price factor. After reviewing the data on the Contribution Margin Data panel, complete the following contribution margin analysis. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Saxon, Inc. Contribution Margin Analysis For the Year Ended December 31 1 Planned contribution margin 2 Effect of changes in sales: 3 Sales quantity factor 4 Unit price factor 5 Total effect of changes in sales 6 Effect of changes in variable cost of goods sold: 7 Variable cost quantity factor 8 Unit cost factor 9 Total effect of changes in variable cost of goods sold 10 Effect of changes in selling and administrative expenses: 11 Variable cost quantity factor 12 Unit cost factor 13 Total effect of changes in selling and administrative expenses 14 Actual contribution margin For planning and control purposes, managers often compare planned and actual contribution margin. Variable costing is used as a basis for such analyses. Examine the following contribution margin data, and then complete the Contribution Margin Analysis panel. Saxon, Inc. Contribution Margin Data Schedule Actual Planned Sales $1,125,000 $1,190,000 Variable cost of goods sold $450,000 $462,000 Variable selling and administrative expenses 210,000 154,000 Total $660,000 $616,000 Contribution margin $465,000 $574,000 Number of units sold 15,000 14,000 Per unit: Sales price $75.00 $85.00 Variable cost of goods sold 30.00 33.00 Variable selling and administrative expenses 14.00 11.00
Chapter1: Financial Statements And Business Decisions
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Contribution margin analysis focuses on explaining the differences between planned and actual contribution margins, considering the quantity factor and the unit price factor.
After reviewing the data on the Contribution Margin Data panel, complete the following contribution margin analysis. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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Saxon, Inc.
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Contribution Margin Analysis
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For the Year Ended December 31
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Planned contribution margin
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2
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Effect of changes in sales:
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3
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Sales quantity factor
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4
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Unit price factor
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5
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Total effect of changes in sales
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6
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Effect of changes in variable cost of goods sold:
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Variable cost quantity factor
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Unit cost factor
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9
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Total effect of changes in variable cost of goods sold
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10
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Effect of changes in selling and administrative expenses:
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11
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Variable cost quantity factor
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12
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Unit cost factor
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13
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Total effect of changes in selling and administrative expenses
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Actual contribution margin
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For planning and control purposes, managers often compare planned and actual contribution margin. Variable costing is used as a basis for such analyses.
Examine the following contribution margin data, and then complete the Contribution Margin Analysis panel.
| Saxon, Inc. | ||
| Contribution Margin Data Schedule | ||
| Actual | Planned | |
| Sales | $1,125,000 | $1,190,000 |
| Variable cost of goods sold | $450,000 | $462,000 |
| Variable selling and administrative expenses | 210,000 | 154,000 |
| Total | $660,000 | $616,000 |
| Contribution margin | $465,000 | $574,000 |
| Number of units sold | 15,000 | 14,000 |
| Per unit: | ||
| Sales price | $75.00 | $85.00 |
| Variable cost of goods sold | 30.00 | 33.00 |
| Variable selling and administrative expenses | 14.00 | 11.00 |
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