The overarching goal is to calculate the line item variances for New Car Sales, Used Car Sales, and Repairs for 20x6. T he learning objectives are to utilize variance analysis to evaluate the performance of Prestige Auto’s business segments, prepare a memorandum to management that communicates variance results clearly, and use basic Excel commands to complete the analysis. The data work sheets used in the analysis are Income Statement 12-31-x6, Balance Sheet 12-31-20x6, and Annual Performance Comparison. The template to complete is DB Problem 12.1 Template.

Do the following:

Calculate the line item variance for revenues. Calculate the line item variance for selling costs. Assign favorable or unfavorable notation to the line item variances. For revenues actual, less than budgeted is unfavorable, while for expenses, less than budgeted is favorable.

Conversely, for revenues actual, greater than budgeted is favorable, while expenses actual, greater than budget is unfavorable.

REQUIRED:

a. Complete the worksheet DB Problem 12.1 Template and turn it in to your instructor.

b. Add an essay that notes which part of Prestige Auto is doing the best, and which is doing the worst. Please be specific, using the results of your analysis to justify your opinion.