The following data for Gardot Products Inc are available Pre

The following data for Gardot Products Inc. are available:

Prepare an analysis of the sales quantity and unit price factors.

For the Year Ended December 31	Actual	Planned	Difference—Increase or (Decrease)
Sales	$1,684,800		$1,652,400		$32,400
Less:
Variable cost of goods sold	$889,200		$874,800		$14,400
Variable selling and administrative expenses	171,600		178,200		-6,600
Total variable costs	$1,060,800		$1,053,000		$7,800
Contribution margin	$624,000		$599,400		$24,600
Number of units sold	15,600		16,200
Per unit:
Sales price	$108		$102
Variable cost of goods sold	57		54
Variable selling and administrative expenses	11		11

Solution

Gardot Products Inc. Statement Showing Analysis Particulars Description Amount ($) Effect of changes in sales: Sales quantity factor $93,600.00 Unit Price factor -$61,200.00 Total effect of change in sales $32,400.00 Working Note: Actual Planned Difference Sales $1,684,800.00 $1,652,400.00 $32,400.00 Sales Price $108 $102 $6 Sales Qty ( Sales/Sales Price)               15,600               16,200                   600 Sales Quantity Factor Decrease in Unit ( 15600-16200) -600 Planned Sales Price $102 Effect due to Sales Quantity Factor (600*102) ($61,200) Unit Price Factor Increase in Sales Price ($108-$102) $6 Actual Sales Quantity $15,600 Effect due to Increase in Unit Price Factor( $6*15600) $93,600