Question

Realtors, Inc., specializes in the sale of residential properties. It earns its revenue by charging a percentage of the sales price. Commissions for sales persons, listing agents, and listing companies are its main costs. Business has improved steadily over the last 10 years. The managing partner of Realtors, Inc., receives a report summarizing the company’s performance each year. The report for the most recent year follows.


Required
1. Analyze the performance report. What does it say about the company’s performance? Is the performance report reliable? Explain your answer.
2. Calculate the budgeted selling fee and budgeted variable costs per home sale.
3. Prepare a performance report using a flexible budget based on the actual number of home sales.
4. Analyze the report you prepared in requirement 3. What does it say about the company’s performance? Is the report reliable? Explain your answer.
5. What recommendations would you make to improve the company’s performance nextyear?


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  • CreatedMarch 26, 2014
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