Milestone Two - Contribution Margin Analysis [Share and explain your contribution margin per unit. How did you arrive at these numbers? Be sure to reference your cost-volume-profit analysis in your defense.] [Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.] [This section is designed to have you assess your financial performance to date] Statement of Cost of Goods Sold Milestone Three - Statement of Cost of Goods Sold [Compare the actual cost of goods sold over the last month and evaluate the company's performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.] Milestone Three - Income Statement Revenue: Collars Leashes $ 10,800 14,000 Harnesses Total Revenue: Cost of goods sold Gross profit Expenses: General and administrative salaries Office supplies Other business equipment \begin{tabular}{l|l|} $ & 1,950 \\ 200 \\ 150 \end{tabular} Total Expenses Net income/Loss [Based on your income statement, logically interpret the business's performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.] Variances Variances for Collar Sales Direct Labor Time Variance (Actual Hours - Standard Hours) Standard Rate Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) Standard Price Direct Materials Price Variance (Actual Price - Standard Price) Actual Quantity [Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?] Significance of V ariances [Share a summary of your variance analysis. Were the variances favorable or unfavorable?] [Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean? Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.]