Show the flexible budget for January in Contribution Margin Income Statement format be sure to list out each expense line. Compare Januarys flexible budget to Januarys actual results. Specify which line items are favorable or unfavorable and how much. Provide potential explanations for each of the variable costs. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons. Show the flexible budget for February in Contribution Margin Income Statement format be sure to list out each expense line. Compare Februarys flexible budget to Februarys actual results. Specify which line items are favorable or unfavorable and how much. Provide potential explanations for each of the variable costs. Note: Saying that an item was above or below budget is NOT an explanation. You need to include potential (made-up) reasons.

Monthly Budget Data: Selling price per unit: Raw Material Costs Packaging Costs Electricity Waste and Other Costs Salary and Wages Costs Fringe Benefits Rent Costs Insurance Costs Depreciation Costs $79.00 per each $34.00 per each $12.00 per each $6.00 per each $8.00 per each $550,000 per month 50% of Salaries $900,000 per month $50,000 per month $380,000 per month Actual Data: Production (Units) Revenue Raw Materials Packaging Materials Electricity Waste and Other Costs Wages Fringe Benefits Rent Insurance Depreciation $ $ $ $ $ $ $ $ $ $ January February 235,000 177,000 18,495,000 $13,995,000 7,735,000 $ 5,843,000 2,870,000 $ 2,197,000 1,485,000 $ 962,000 1,985,000 $ 1,452,000 550,000 $ 560,000 275,000 $ 280,000 900,000 $ 900,000 50,000 $ 55,000 380,000 $ 390,000