Based on this income statement, evaluate the businesss performance against the benchmarks.Did the business do as well as expected? Explain what happened.

Revenue: Collars $ 12,880 10,800 Leashes Harnesses 14,000 Total Revenue: $ Cost of goods sold Gross profit 37,680.00 28,258.33 9,421.67 $ Expenses: General and administrative salaries $ 2,450.00 Depreciation 165.00 Rent 750.00 Utilities and insurance 600.00 Scissors, thread, and cording $ $ 1,200.00 Loan 550.00 Total Expenses $ 5,715.00 Net Income/Loss $ 3,706.67 Collars 7 Item Variable Cost/Item Item Fixed Costs $ 4.00 $ 2,773.33 Collar maker's salary (monthly) Depreciation on sewing machines 3.00 55.00 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12 Price tags $ $ $ $ $ 2.00 Rent 250.00 0.10 Utilities and insurance $ 200.00 13 400.00 14 Scissors, thread, and cording Loan payment Salary to self $ $ $ 183.33 15 166.67 16 17 19 Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 4,028.33 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 6.00 2,773.33 $ $ Leash maker's salary (monthly) Depreciation on sewing machines 4.50 55.00 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags 1.50 Rent 250.00 $ $ 0.10 $ $ $ $ $ $ $ 200.00 31 Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 400.00 32 183.33 33 166.67 34 35 36 38 Total Variable Costs per Leash $ 12.10 Total Fixed Costs $ 4,028.33 39 41 42 Harnesses Variable Cost/Item Item Fixed Costs 6.00 44 Item 46 High-tensile strength nylon webbing 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags Harness maker's salary Depreciation on sewing machines 2,946.67 55.00 4.50 $ $ $ nisises 4.00 Rent 250.00 0.10 Utilities and insurance $ 200.00 50 Scissors, thread, and cording 400.00 51 Loan $ $ $ 183.33 52 Salary to self 166.67 53 54 55 57 Total Variable Costs per Harness $ 14.60 Total Fixed Costs $ 4,201.67 COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit $28.00 $9.10 $30.00 $12.10 $35.00 $14.60 Contribution Margin $18.90 $17.90 $20.40 1 5 Beginning Work in Process Inventory Direct Materials: 7 3 0 Materials: Beginning Add: Purchases for month of January 2 $ 20,000 1 Materials available for use 20,000 2 Deduct: Ending materials 4,000 4 Materials Used $ 16,000 5 6 Direct Labor 7 Overhead 8,493.33 3,765.00 9 Total Costs $ 28,258.33 0 1 Deduct: Ending Work in Process Inventory 0 2 3 Cost of Goods Sold $ 28,258.33 4 5 At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: . O Materials purchased: $20,000 Consumed 80% of the purchased materials Direct labor: $8,493.33 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month. Established Sales Number of Items Sold per Day Price Collars 33 $20 $24 $28 28 23 Leashes 28 23 18 $22 $26 $30 Harnesses $25 $30 $35 25 22 20 The other costs incurred by the business include: . General and administrative salaries o O . . Receptionist: $1,950 Owner salary: $500 Depreciation: $165 Rent: $750 Utilities and insurance: $600 Scissors, thread, and cording: $1,200 Loan repayment: $550 . Revenue: Collars $ 12,880 10,800 Leashes Harnesses 14,000 Total Revenue: $ Cost of goods sold Gross profit 37,680.00 28,258.33 9,421.67 $ Expenses: General and administrative salaries $ 2,450.00 Depreciation 165.00 Rent 750.00 Utilities and insurance 600.00 Scissors, thread, and cording $ $ 1,200.00 Loan 550.00 Total Expenses $ 5,715.00 Net Income/Loss $ 3,706.67 Collars 7 Item Variable Cost/Item Item Fixed Costs $ 4.00 $ 2,773.33 Collar maker's salary (monthly) Depreciation on sewing machines 3.00 55.00 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12 Price tags $ $ $ $ $ 2.00 Rent 250.00 0.10 Utilities and insurance $ 200.00 13 400.00 14 Scissors, thread, and cording Loan payment Salary to self $ $ $ 183.33 15 166.67 16 17 19 Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 4,028.33 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 6.00 2,773.33 $ $ Leash maker's salary (monthly) Depreciation on sewing machines 4.50 55.00 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags 1.50 Rent 250.00 $ $ 0.10 $ $ $ $ $ $ $ 200.00 31 Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 400.00 32 183.33 33 166.67 34 35 36 38 Total Variable Costs per Leash $ 12.10 Total Fixed Costs $ 4,028.33 39 41 42 Harnesses Variable Cost/Item Item Fixed Costs 6.00 44 Item 46 High-tensile strength nylon webbing 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags Harness maker's salary Depreciation on sewing machines 2,946.67 55.00 4.50 $ $ $ nisises 4.00 Rent 250.00 0.10 Utilities and insurance $ 200.00 50 Scissors, thread, and cording 400.00 51 Loan $ $ $ 183.33 52 Salary to self 166.67 53 54 55 57 Total Variable Costs per Harness $ 14.60 Total Fixed Costs $ 4,201.67 COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit $28.00 $9.10 $30.00 $12.10 $35.00 $14.60 Contribution Margin $18.90 $17.90 $20.40 1 5 Beginning Work in Process Inventory Direct Materials: 7 3 0 Materials: Beginning Add: Purchases for month of January 2 $ 20,000 1 Materials available for use 20,000 2 Deduct: Ending materials 4,000 4 Materials Used $ 16,000 5 6 Direct Labor 7 Overhead 8,493.33 3,765.00 9 Total Costs $ 28,258.33 0 1 Deduct: Ending Work in Process Inventory 0 2 3 Cost of Goods Sold $ 28,258.33 4 5 At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: . O Materials purchased: $20,000 Consumed 80% of the purchased materials Direct labor: $8,493.33 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month. Established Sales Number of Items Sold per Day Price Collars 33 $20 $24 $28 28 23 Leashes 28 23 18 $22 $26 $30 Harnesses $25 $30 $35 25 22 20 The other costs incurred by the business include: . General and administrative salaries o O . . Receptionist: $1,950 Owner salary: $500 Depreciation: $165 Rent: $750 Utilities and insurance: $600 Scissors, thread, and cording: $1,200 Loan repayment: $550