Mountain sports equipment company projected sales of 78,000 units at a sale price of $12 for the year 2015. Actual sales of 2015 were 75,000 units at $14.00 per unit. Variable costs were budgeted at $3 per unit and the actual amount was $4 per unit. Budgeted fixed costs totaled $375,000, while actual fixed costs amounted to $400,000.
What is the sales volume variance for total revenue.
what is the flexible budget variance for variable expenses.© BrainMass Inc. brainmass.com October 25, 2018, 9:41 am ad1c9bdddf
Sales volume variance for total revenue:
Budgeted total revenue = 78000*12 = $936,000
Actual total ...
For given data variance of total revenue and variable expenses are estimated with clear, easy-to-follow calculations.
Garcia's performance evaluation system
Diego Garcia owns a chain of travel goods stores. Last year, his sales staff sold 10,000 suitcases at an average sale price of $150. Variable expenses were 80% of sales revenue, and the total fixed expenses were $110,000. This year, the chain sold more expensive product lines. Sales were 8,000 suitcases at an average price of $200. The variable expense percentage and the total fixed expenses were same the both years. Garcia evaluates the chain manager by comparing this year's income with last years income.
1. Prepare a performance report for this year. How would you improve Garcia's performance evaluation system to better analyze this year's results?View Full Posting Details