Question: Doug Ramirez owns a chain of travel goods stores Ramirez

Doug Ramirez owns a chain of travel goods stores, Ramirez Travel Goods. Last year, his sales staff sold 20,000 suitcases at an average sales price of $ 190. Variable expenses were 75% of sales revenue, and the total fixed expense was $ 250,000. This year, the chain sold more expensive product lines. Sales were 15,000 suitcases at an average price of $ 290. The variable expense percentage and the total fixed expenses were the same both years. Ramirez evaluates the chain manager by com-paring this year’s income with last year’s income.
Prepare a performance report for this year, similar to Exhibit 22- 2, which compares this year’s result to last year’s results. How would you improve Ramirez’s performance evaluation system to better analyze this year’s results?

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  • CreatedJanuary 16, 2015
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