They budgeted expenses to total 959000 the actual

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unit for a total of $1,050,000 revenue for the year 2014.They budgeted expenses to total $959,000. The actual units sold were 47,000 for a total revenue of $991,700. Actual expenses for the year 2014 totaled $1,001,496 at the budgeted numbers vs the actual numbers we show that they produced 3,000 less bird feeders and came in $42,496 over budget on expenses. Materials- Cedar cost exceeded the budget by $23,160 and in Factory Worker Labor came in over budget at $32,760. These two expenses are the main ones that contributed to exceeding the budget and cost MDE Manufacturing from gains in profit. The budgeted variable cost per unit was $15.56 with a contribution margin of $5.44 and contribution margin percentage of 25.9% The actual variable cost per unit came in at $17.47 per unit with a contribution margin of $3.53 and a contribution margin percentage of 17.2%. These differences, along with lower than expected sales, led to a loss for MDE Manufacturing on the bird feeders. The breakeven point for the 2014 budget is 32,272 bird feeders, which they met. The goal of the company was to make a $10,000 profit, due to the exceeding cost on Direct 2
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Final Project Milestone Two Analysis -Materials-Cedar and the Factory Worker Labor cost this prevented them from making that profit. 3
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