Solution: Budget Sales Apple Cider Units Price Variable 50,000 56.40 2,820,000 Lemonade Berry Banana Smoothie Orange Mango Smoothie Total Fixed Total Units Price Variable Fixed 2,820,000 26,000 58.80 1,528,800 Total 1,528,800 Units 16,000 Price Variable 62.40 998,400 Fixed Total 998,400 Units 14,000 Price Variable 46.80 655,200 Fixed Total 655,200 company 6,002,400 Direct costs Raw materials - apples 50,000 21.48 1,074,000 1,074,000 26,000 Raw materials - other 50,000 Direct labor 50,000 12.50 625,000 625,000 26,000 26,000 20.64 536,640 5.00 130,000 16,000 536,640 16,000 130,000 16,000 5.64 90,240 16.85 269,600 10.00 160,000 90,240 14,000 269,600 14,000 160,000 14,000 5.64 78,960 12.35 172,900 10.00 140,000 78,960 172,900 140,000 1,243,200 979,140 1,055,000 Indirect costs Supplies Supervision Utilities Occupancy 50,000 1.13 56,500 50,000 50,000 0.57 28,500 50,000 Depreciation 50,000 75,000 24,000 120,000 80,000 56,500 26,000 75,000 26,000 52,500 26,000 120,000 26,000 1.13 29,380 29,380 16,000 1.13 18,080 60,000 0.57 14,820 Commissions 50,000 2.82 141,000 80,000 26,000 141,000 26,000 24,000 120,000 24,000 60,000 16,000 38,820 16,000 120,000 16,000 0.57 9,120 35,000 12,000 18,080 14,000 35,000 14,000 21,120 14,000 1.13 15,820 15,820 119,780 35,000 35,000 205,000 0.57 7,980 12,000 19,980 132,420 60,000 24,000 16,000 20,000 Delivery costs 50,000 1.43 71,500 45,000 Marketing/promotion 50,000 Administration 50,000 0.29 14,500 20,000 215,000 Total costs 40.22 2,011,000 $ 579,000 116,500 26,000 20,000 26,000 229,500 26,000 2,590,000 2.94 1.43 76,440 37,180 76,440 16,000 45,000 82,180 16,000 3.12 1.43 49,920 22,880 45,000 20,000 0.29 32.00 7,540 195,000 20,000 16,000 202,540 16,000 5,000 60,000 14,000 20,000 14,000 49,920 14,000 67,880 14,000 5,000 14,000 60,000 60,000 360,000 15,000 15,000 139,000 2.34 1.43 32,760 32,760 300,120 20,020 45,000 65,020 331,580 $ 832,000 $ 488,000 1,320,000 0.29 39.03 4,640 145,000 $624,480 $322,000 149,640 14,000 946,480 0.29 33.75 $472,500 4,060 5,000 145,000 $317,000 5,000 50,000 149,060 730,740 789,500 5,645,980 Product income $ 16.18 $ 230,000 $ 26.80 $ 208,800 $ 23.37 $ 51,920 $ 13.05 $ (134,300) $ 356,420 Contribution margin Budget + $ 809,000 $ 696,800 $ 373,920 $ 182,700 $ 2,062,420