Question: Aqua Clean, Inc., operates a pool cleaning service. Aqua Clean wants to compare this months results with those for last month, which is believed to

Aqua Clean, Inc., operates a pool cleaning service. Aqua Clean wants to compare this month€™s results with those for last month, which is believed to be a typical €œbase period.€ Assume that the following information is provided:

Required
Compute the flexible budget and sales activity variance and prepare a profit variance analysis (like the one in Exhibit 16.5 of the previous chapter) in as much detail as possible.
What impact did the changes in number of cleanings and average revenues (i.e., sales price) have on Aqua Clean€™s contributionmargin?

Last Month This Month 161 $22,680 $22800 140 Number of cleanings Hevenues Variable costs 5,220 4,620 $18.060 $17.580 Contribution margin..

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