Pierce Enterprises has four operating divisions that reported the following results for 20x6. REQUIRED: a. Compute the
Question:
Pierce Enterprises has four operating divisions that reported the following results for 20x6.
REQUIRED:
a. Compute the variances by line item for Pierce Enterprise’s four divisions and company total.
b. Which divisions are performing better than expected?
Transcribed Image Text:
Pierce Enterprises (stated in millions) Line Item Division A Division B Division C Division D Pierce Enterprises Actual Budget Actual Budget Actud Budget Actud Budget Actual Budget Sales $54.5 $58.3 $65.8 $62.3 $38.5 $34.2 $98.9 $86.5 $257.7 $241.3 Less: Cost of Goods Sold $26.2 $27.4 $33.6 $34.4 $18.1 $16.4 $44.5 $40.7 122.3 $118.9 Gross Margin $28.3 $30.9 $32.2 $27.9 $20.4 $17.8 $54.4 $45.8 $135.4 $122.4 Less: SG&A $15.0 $15.8 $15.5 $13.1 $10.6 $9.1 $26.7 $21.1 $67.8 $59.0 Income Before Tox $13.3 $15.1 $16.8 $14.8 $9.8 $8.7 $27.7 $24.8 $67.6 $63.4
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Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant
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