In contribution margin analysis,the quantity factor is computed as:
A) the increase or decrease in the number of units sold multiplied by the planned unit sales price or unit cost
B) the increase or decrease in unit sales price or unit cost multiplied by the planned number of units to be sold
C) the increase or decrease in the number of units sold multiplied by the actual unit sales price or unit cost
D) the increase or decrease in the unit sales price or unit cost multiplied by the actual number of units sold

Question

Quizplus · Accepted Answer

The quantity factor in contribution margin analysis is the change in the number of units sold, multiplied by the planned unit sales price or unit cost. This calculation helps determine how much of the change in contribution margin is due to changes in quantity sold versus changes in unit price or unit cost. Therefore, option A is the correct choice.

In Contribution Margin Analysis,the Quantity Factor Is Computed As