Midwest Ice Cream Company
Not what you're looking for?
Midwest Ice Cream Company (HBS Case) 9-175-070
Explain the major reasons for the favorable operating income variance of $71,700.
How can an analysis of the profit variance highlight those areas needing management attention?
Purchase this Solution
Solution Preview
Explain the major reasons for the favorable operating income variance of $71,700.
The first major reason for the favorable operating income variance of $71,700 is that there have been higher sales volume than that forecasted. Essentially, higher sales volume has been responsible for the favorable operating income variance. The actual net sales are $9,657,300, whereas, the budgeted sales volume was $9,645,300. On the other hand unfavorable variance due to operations have actually decreased the favorable operating income variance by $46,000. Specifically, the major reason for the favorable operating income variance is the higher actual sales than planned sales of product D and product E. The planned product sales of product D was ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Introduction to Finance
This quiz test introductory finance topics.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.