03 Bruce Inc Contribution Margin Analysis For the Year Ended

03 bruce inc contribution margin analysis for the

This preview shows page 71 - 72 out of 72 pages.

expenses.27.30(.03)Bruce Inc.Contribution Margin AnalysisFor the Year Ended December 31, 2012Planned contribution margin$104,000Effect of changes in salesSales quantity factor:Decrease in number of units sold in 2012(10,000)Planned sales price in 2012´ $2.50$(25,000)Price factor:Increase in unit sales price in 2012$ .10Number of units sold in 2012´ 120,00012,000Total effect of changes in sales$(13,000)Effect of changes in variable cost ofgoods sold:Quantity factor:Decrease in number of units sold in 201210,000Planned unit cost in 2012´$1.40$14,000Unit cost factor:Increase in unit cost in 2012$0.01Number of units sold in 2012´ 120,0001,200Total effect of changes in variable cost of goods sold12,800Effect of changes in selling and administrative expenses:Quantity factor:Decrease in number of units sold in 2012(10,000)Planned unit cost in 2012´ $ 0.30$ 3,000Unit cost factor:Decrease in unit cost in 2012$0.03Number of units sold in 2012´ 120,0003,600Total effect of changes in selling and administrative expenses6,600Actual contribution margin$110,400153. The Excelsior Company has three salespersons. Average sales price per unit sold, average variable manufacturing costs per unit, and number of units sold for each salesperson is shown below. Commissions are according to the following schedule:Total SalesPercentage$0 to 49,9996%$50,000 to $52,9997%Over $53,0008%SalespersonMary Q.John A.Susan B.
Background image
Avg. selling price per unit$50.00$65.00$45.00Avg. var. mfg. costs per unit25.0030.0035.00Number of units sold1,0007501,200Prepare a contribution by salesperson report.SalespersonMary Q.John A.Susan B.Total sales$50,000$48,750$54,000Variable mfg. cost25,00022,50042,000Manufacturing margin$25,000$26,250$12,000Commissions3,5002,9254,320Contribution margin per salesperson$21,500$23,325$7,680154. The Excelsior Company has three salespersons. Average sales price per unit sold, average variable manufacturing costs per unit, and number of units sold for each salesperson is shown below. Commissions are according to the following schedule:Total SalesPercentage$0 to 49,999 6%$50,000 to $52,999 7%Over $53,000 8%SalespersonMary Q.John A.Susan B.Avg. selling price per unit$50.00$65.00$45.00Avg. var. mfg. costs per unit25.0030.0035.00Number of units sold1,0007501,200Prepare a contribution by salesperson report.SalespersonMary Q.John A.Susan B.Total sales$50,000$48,750$54,000Variable mfg. cost25,00022,50042,000Manufacturing margin$25,000$26,250$12,000Commissions3,5002,9254,320Contribution margin per salesperson$21,500$23,325$7,680
Background image

You've reached the end of your free preview.

Want to read all 72 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture