investors sheets on gross profits and accounting We also created a variance analysis to show you how our collar manufacturing costs differed from our budget. Due to increasing demand for these items, the table above shows a higher labor rate, labor hours, and variable material cost. Variance significance While our variables were more than expected, we will use this knowledge to make better judgments for the next month and quarter to lower our labor expenses. We may also look at alternative suppliers or engage into a price agreement with our present vendor to lower material costs to maintain strong contribution margins and decrease operational variations.
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