quot;Baucom Industries Inc. manufactures only one product. For the year ended Dec 31, 2010, the contribution margin increased by 36,000from the…

“Baucom Industries Inc. manufactures only one product. For the year ended Dec 31, 2010, the contribution margin increased by 36,000from the planned level of 720,000. The president of Baucom Industries Inc. has expressed some concerns about such a small increase and has requested a follow-up report. The following data have been gathered from the accounting records for the year ended Dec 31, 2010.Sales: Actual: 1,470,000 Planned: 1,440,000 Difference-Increase (Decrease): 30,000 Less:Variable cost of goods sold: Actual 560,000 Planned 592,000 Difference-Increase (Decrease): (32,000) Variable selling and administrative expenses: Actual 154,000 Planned: 128,000 Difference-Increase (Decrease): 26,000Total: Actual 714,000 Planned: 720,000 Difference-Increase (Decrease): (6,000)Contribution Margin Actual 756,000 Planned 720,000 Difference-Increase (Decrease): 36,000Number of units sold: Actual 14,000 Planned 16,000Per unit:Sales price: Actual 105.00 Planned 90.00Variable cost of goods sold:Actual 40.00 Planned 37.00Variable selling and administrative expenses: Actual 11.00 Planned 8.001. Prepare a contribution margin anaylsis report for the year ended Dec 31, 2010.

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