Darrell Perez owns a chain of travel goods stores, Perez Travel Goods. Last year, his sales staff
Question:
Darrell Perez owns a chain of travel goods stores, Perez Travel Goods. Last year, his sales staff sold 10,000 suitcases at an average sale price of $160. Variable expenses were 60% of sales revenue, and the total fixed expense was $170,000. This year, the chain sold more expensive product lines. Sales were
9,000 suitcases at an average price of $210. The variable expense percentage and the total fixed expenses were the same both years. Perez evaluates the chain manager by comparing this year's income with last year's income.
Prepare a performance report for this year. How would you improve Perez's performance evaluation system to better analyze this year's results?
Begin by preparing a performance report.
Perez Travel Goods | ||||
Income Statement Performance Report | ||||
This Year | Last Year | Variance | ||
Number of suitcases sold | ||||
Sales Revenue | ||||
Variable Expenses | ||||
Contribution Margin | ||||
Fixed Expenses | ||||
Operating Income |
How would you improve Perez's performance evaluation system to better analyze this year's results?
A better system would compare ___________
▼
last year's actual results
last year's budget
next year's budget
this year's actual results
with _________________
▼ _______________
last year's actual results
last year's budget
next year's budget
this year's actual results
this year's budget
,which considers all factors that affect this year's operations.