COLLARS LEASHES HARNESSES Sales Price 15 18 20 Fixed Costs 4,028.333 4,028.333 4,201.66 Contribution Margin 5.9 5.9 5.4 Break-Even Units (round up) 682.768 682.768 778.085 Target Profit 300 400 500 Break-Even Units (round up) 733.559 750.565 870.678 Target Profit 500 600 650 Break-Even Units (round up) 767.514 784.463 898.456 Data for Variance Analysis: Budgeted (Standard) Hours/Qty Budgeted (Standard) Rate Actual Hours/Qty Actual Rate Labor Materials Variances for Collar Sales Variance Favorable/ Unfavorable Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate 0 Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price Direct Materials Price Variance (Actual Price - Standard Price) Actual Quantity 0 Beginning Work in Process Inventory Direct Materials: Materials: Beginning Add: Purchases for month of January 0 20,000 Materials available for use Deduct: Ending materials 20,000 -4,000 Materials Used 16,000 Direct Labor Overhead 8,493.33 3,765 Total Costs 28,258.33 Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold 28,258.33 12,880 Revenue: Collars Leashes Harnesses 10,800 14,000 Total Revenue: Cost of goods sold Gross profit 37,680 -28,258.33 9,421.67 -2,450 Expenses: General and administrative salaries Depreciation Rent Utilities and insurance Scissors, thread, and cording Loan -165 -750 -600 -1,200 -550 Total Expenses -5,715 Net Income/Loss 3,707