Manufacturing Annual Draft Operating Budget

Case Analysis: Xample Manufacturing Annual Draft Operating Budget

[WLO: 2] [CLO: 6]

Prior to beginning work on this assignment, read the A Budget Model for a Small Manufacturing Firm article. A Writing a Case Study AnalysisLinks to an external site. resource is available in the Writing Center.

Review the Xample Manufacturing Case below. Using the information and the financial data derived in the Xample case, and after reading Fleming’s article, you will create an annual budget in draft form divided into four periods (Quarter 1, Quarter 2, Quarter 3, and Quarter 4) using the provided budget template below.

Xample Manufacturing Case

Consider the following case scenario: Imagine you are a manager of a small plastic parts manufacturing contracting business making parts under contract to electronic consumer goods industry and defense industry companies, and you are in charge of developing a projected annual operating budget.

Your budgetary figures are as follows: For fiscal year 2019, your firm received a $3 million contract from Sony to provide small parts for its current Ultra HD Blu-Ray Player, as well as various contracts totaling $1.75 million from other business. Xample also has an $180,000 annual contract from Boeing, and a contract for small plastic parts from Ratheon totaling $1.6 million annually.

Your chief financial officer (CFO) has provided you with the following annual expenses:

Xample Manufacturing Expenses

Annual   Salaries

$1.63   million

Annual   Benefits

$   245,000

Annual   Rent

$   760,000

Annual   Insurance