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For this assignment, pretend you work at a manufacturing Company. Throughout Unit 3 we have been learning about the creation and evaluation of master budgets.

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For this assignment, pretend you work at a manufacturing Company. Throughout Unit 3 we have been learning about the creation and evaluation of master budgets. Given the information shown in the graphic below, please create an email to your supervisor that discusses the favorable and unfavorable outcomes when the budget is compared to actual results. This can just be a brief overview of the results. For two of the outcomes (favorable or unfavorable) discuss a brief explanation for the outcome (ex. the Company produced more units than budgeted due to the purchase of a new machine in the current year that increased capacity). Static Budget Performance Report For the Year Ended December 31, 2025 \begin{tabular}{lrr} & \begin{tabular}{r} Actual \\ Results \end{tabular} & \begin{tabular}{r} Static \\ Budget \end{tabular} \\ \hline Units (Batches of 100) & 52,000 & 50,000 \\ \hline Sales Revenue & $384,800 & $375,000 \\ Variable Costs: & & \\ Manufacturing: & 104,000 & 87,500 \\ Direct Materials & 145,600 & 150,000 \\ Direct Labor & 30,160 & 37,500 \end{tabular} Selling and Administrative: Supplies Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} Static Budget Performance Report \\ For the Year Ended December 31, 2025 \end{tabular}} \\ \hline & \begin{tabular}{l} Actual \\ Results \end{tabular} & \begin{tabular}{l} Static \\ Budget \end{tabular} \\ \hline Units (Batches of 100) & 52,000 & 50,000 \\ \hline Sales Revenue & $384,800 & $375,000 \\ \hline \multicolumn{3}{|l|}{ Variable Costs: } \\ \hline \multicolumn{3}{|l|}{ Manufacturing: } \\ \hline Direct Materials & 104,000 & 87,500 \\ \hline Direct Labor & 145,600 & 150,000 \\ \hline Variable Overhead & 30,160 & 37,500 \\ \hline \multicolumn{3}{|l|}{ Selling and Administrative: } \\ \hline Supplies & 19,200 & 18,750 \\ \hline Total Variable Costs & 298,960 & 293,750 \\ \hline Contribution Margin & 85,840 & 81,250 \\ \hline \multicolumn{3}{|l|}{ Fixed Costs: } \\ \hline Manufacturing & 23,920 & 25,000 \\ \hline Selling and Administrative & 25,600 & 22,500 \\ \hline Total Fixed Costs & 49,520 & 47,500 \\ \hline Operating Income & $36,320 & $33,750 \\ \hline \end{tabular}

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