is not presented in the question. b. We can get the following variance calculations based on the information provided: 1. Static budget variance Variable cost is 50% of revenue‚ then budgeted variable cost is $5‚ and actual variable cost is $4.75. Static budget variance = 470×27×(9.5 – 4.75) - 800×23×(10 - 5)= $510‚775U 2. Flexible budget variance 470×27×[(9.5 – 4.75) - (10 - 5)] = $3‚172.5U 3. Sales volume variance (470×27 - 800×23) ×(10 - 5) = $23‚550U Based on the calculations
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profit and investment. The investment centre manager has control over revenue‚ expenses and the amount invested in the current assets. The following are the techniques used to measure the divisional performance of cost centre and profit centre * Variance analysis * Profit * Return on investment * Market share COST PER UNIT: Cost refers to the total cost incurred for the production. So cost per unit refers to the cost incurred for producing 1 unit. Normally we used the below formula to calculate
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department that her department experienced an unfavourable sales volume variance in the preceding period but a favourable sales price variance. Based on these contradictory results‚ how would you interpret her overall performance as suggested by her variances? Q15: Sara Anderson says that she is a busy woman with no time to look at favorable variances. Instead‚ she concentrates solely on the favorable once. She says that favorable variances imply that employees are doing better than expected and need
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analysis on variances. Sales variance‚ production cost variances and overhead variances are calculated as follows: - Sales Variance Actual Price($) Budgeted Price($) Actual Quantity Sold(Unit) Budgeted Quantity Sold(Unit) Price Variance ($) F/U Quantity Variance ($) F/U Round 22 25 1100 1000 (3300) U 2500 F Square 35 34 3900 4000 3900 F (3400) U Oval 42 45 2250 3000 (6750) U (33750) U Total 7250 8000 (6150) U (34650) U - Ss - o Figures in bracket are unfavorable variances‚ the
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BLEKINGE INSTITUTE OF TECHNOLOGY School of Management MBA Thesis Report ON The Impact of Product Innovation on Sales Volumes of Consumer Goods. (A case study of Royal Philips Electronics N.V) AUTHOUR: Idowu Akindipe SUPERVISOR: Ian Robson June 2007 ABSTRACT Studies have shown that application of innovation in products and marketing as strategy is important to the survival of a firm. However‚ only few companies are adopting this concept as a major strategy due to their
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be the most successful area for the company. In 1999 the company made 80 million in sales and 60% of this was contributed by the DFW area. There are two segments within the company’s main sales attributes and these are between the do it yourself market and the professional market. With regards to the professional market in the DFW area this accounted for 70% of sales In the non-DFW area 70% of sales were made through the do-it-yourself market. During a meeting the company discussed
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$450‚000 to $1 million within the next year. Rob Zwettler has recently been promoted to the assistant manager of President of Zenith Computer Terminals. His job is to work on different levels of the organizations. Rob met up with each department (sales‚ production‚ marketing and administration) in the organization to learn more about what was happening in the departments. With what he has learned about each department‚ Zwettler has to make recommendations to the president of Zenith Computer Terminals
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Incentives as a Component of Salesman Compensation Structure By Mohit Pandey 11DM-187 Sales Management-Section D What are Incentives? It is defined as a type of additional remuneration either in cash or kind given to an employee as a means of increasing output or as a motivational influence. Why do we need to give incentives? Firstly incentives work as psychological stimulant for a person to perform better. Incentives act like the pot of gold at the end of the rainbow. Secondly‚ the
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original equipment manufacturing (OEM) coatings‚ and special-purpose lacquers. The paint industry is a maturing industry. In 2004‚ sales were estimated to be slightly over $16billion and an average growth of 1-2% per year. Architectural Paint Coatings Industry The industry estimates that architectural coatings and sundries (brushes‚ paint removers‚ thinners‚ etc.) created sales of $12 billion in 2004. The architectural paint coatings segment is also considered to be projected between the 1-2% increase
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James Bradford‚ a sales manager from the southern region by a sales rep from the same region reporting against sexual discrimination. The management took a serious action in resolving this issue that would have lead to negative publicity of the company. To look deeper into this problem‚ Diana Flanagan along with other management tried to investigate the issues faced generally by all the female sales staff. It was seen that the field tasks that were allotted to the women in sales left them with personal
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