A) If senior management has devised a plan to increase sales by 15% in the next three quarters which was successfully implemented and executed, how does it explain lower net operating income with higher sales?

B) What economic principle closely parallels one of the classic management decisions associated with differential analysis?

C) Wembley Corp has the following standard cost data on manufacturing wood tables: Direct Material - standard quantity to construct one wood table is 4lbs of material, standard price per pound of material is $7 and the standard

material cost for one wood table is $28. During the period Wembley produced 10,000 wood tables. Additional information provided:Wembley purchased 50,000 pounds of material at a cost $352,500 and used 38,700 pounds of

material in production of the 10,000 wood tables (no finished goods or WIP inventories).

What is Wembleys combined spending variance for materials?How should the managers at Wembley interpret this result?

D) Please discuss and explain the importance of cost classification for managerial decision making.

E) Why would senior management choose return on investment over residual income in evaluating the performance of manager responsible for a decentralized business segment?