If the Variable Cost of Goods Sold Totaled $90,000 for the Year

Multiple Choice

If the variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,400 (16,000 units at $5.40 each) , the effect of the quantity factor on the change in contribution margin is:

A) $10,800 decrease
B) $10,800 increase
C) $10,000 increase
D) $10,000 decrease