Waltham Motors produced 14,000 units instead of the expected 18,000. They were 4,000 units under the projected, and the selling price was $49.00, as opposed to the budget price of $48. After losing one contract, they did not sell as many units as expected, resulting in a loss of operating income. The report shows unfavorable differences in contribution margin, sales, and supervisory costs. The manufacturing cost budgeted per unit was $42.93. fixed actual manufacturing cost was $49.51, which is budgeted $6.58 more. I would not agree with Michael that plant performance looked really good due to the over-budget manufacturing costs while producing fewer units since the budgeted costs are based on selling 18,000 units, the variable costs would be unfair. 

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