$1.$ Prepare a revised Performance Report in a columnar contribution margin format. Your report should include master budget and flexible budget figures together with actual figures for the month ended $31\mathrm{.}12\mathrm{.}07.$ In addition your report should include columns for mix and volume variances and price and cost variances.

$2.$ Write yourself a note stating what you will say to Mrs Smith regarding the Mr Jones problem when you meet tomorrow.Case study $3$

Farmfresh Pty$.$ Ltd$.$ Is a large company the premises of which are in the north west of

the city.

The Feeds Division of the compary produces two kinds of animal feeds called

"Chickfeed" and "Cattlefeed". These feeds are packed and sold in bags. Each bag and its

cantents weighs ten kilograms. The companys financial year runs to the ${30}^{th}$ June each

year.

As a member of the Manogement Accounting team it is your task to help management

with accounting matters related to the Feeds Division.

Mrs Smith, the General Manager of the Feeds Division has received the report detailed

below and she made the comment to you. $"$My word Mr Jones $($the Operations Manager

of the Division$)$ has done well. Look at those profit figures, I will authorise a bonus

payment of $10\%$ of the extra profit that has been earned from the actual sales to be

paid to Mr Jones."

You answered Mrs Smith with the following comment. "Well I am not so sure Mr Jones

actually deserves anything. Let me produce some figures that may tell a different

story."

Mrs Smith said as she was leaving the room, $"$OK let me have the figures at our meeting

tomorrow".

The report that gave rise to Mrs Smith's initial comment is as follows.