Monthly Budget Data
Selling price per Unit	$79 per unit
Raw Materials Cost	$27 per unit
Packaging Costs	$15 per unit
Electricity	$4 per unit
Waste and Other Costs	$6 per unit
Salary and Wages Costs	$560,000 per month
Fringe Benefits	50% of salaries
Rent Costs	$750,000 per month
Insurance Costs	$50,000 per month
Depreciation Costs	$370,000 per month

Actual Data		January	February
Production (Units)		245000	187000
Revenue		$ 19,345,000.00	$ 14,888,000.00
Raw Materials		$ 6,545,000.00	$ 4,996,000.00
Package Materials		$ 3,688,000.00	$ 2,897,000.00
Electricity		$ 975,000.00	$ 742,000.00
Waste and Other Costs		$ 1,537,000.00	$ 1,242,000.00
Wages		$ 560,000.00	$ 575,000.00
Fringe Benefits		$ 280,000.00	$ 287,500.00
Rent		$ 750,000.00	$ 750,000.00
Insurance		$ 52,000.00	$ 52,000.00
Depreciation		$ 370,000.00	$ 340,000.00

Vroom-Vroom estimated sales/production will be between 100,000 and 300,000 cars per month. Their static budget is based on 200,000 cars sold per month. Assume that all units produced in a month are also sold in that month. Vroom-Vrooms unit of production/sale is a car (unit/each).

Prepare a static budget in Excel for Vroom-Vroom based on 200,000 units produced. (36 points)

1. Show the static budget for January in Contribution Margin Income Statement format.
2. Compare Januarys static budget to Januarys actual results. Specify which line items are favorable or unfavorable and how much.
3. For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for January. Provide potential explanations for each one. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons.
4. Show the static budget for February in Contribution Margin Income Statement format.
5. Compare Februarys static budget to Februarys actual results. Specify which line items are favorable or unfavorable and how much.
6. For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for February. Provide potential explanations for each one. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons.