Nox Box, LLC$,$ established in the autumn of $2021$ as a non$-$profit entity, specializes in crafting and retailing all$-$natural dog treats. Beyond the provision of wholesome and delectable treats for cherished pets, their overarching mission involves extending support to other animals in need. The proprietor commits to matching every dollar earned in sales, with the entire proceeds being directed towards a no$-$kill animal shelter. Operating as a non$-$profit organization, Nox Box maximizes its funds for the benefit of charitable organizations. The company's product line comprises two varieties of dog treats: the Snickerpooch $($SP$)$ and the Peanut Butter Pupcake $($PB$)$ treat. These treats are bundled for sale, with SP bundles priced at $4$ for $$2$ and PB bundles at $4$ for $$2\mathrm{.}50.$ To bolster their charitable initiatives, Nox Box seeks assistance in projecting future costs to facilitate informed planning for operational expansion. Excess treats are conscientiously disposed of by the Chief Tasting Officer $($CTO$)$ and Head of Research and Development, Nox.

Recipes:

SnickerPoodles:

Per batch of $36$ treats

Rice Flour $469$

Eggs $126$

Vegetable Oil $109$

Baking Soda $5$

Baking Powder $5$

Cinnamon $10$

Honey $180$

Vanilla Extract $4$

Cornmeal $80$

Shortening $96$

Peanut Butter Pupcakes:

Per batch of $60$ treats

Rice Flour $625$

Eggs $63$

Vegetable Oil $109$

Baking Soda $5$

Baking Powder $5$

Cinnamon $14$

Honey $90$

Vanilla Extract $10$

Apples $150$

Peanut Butter $60$

Water $375$

All measurements in grams

Average Prices for Ingredients:

Price per $100$ Grams

Rice Flour $$0\mathrm{.}97$

Eggs $$0\mathrm{.}45$

Vegetable Oil $$0\mathrm{.}25$

Baking Soda $$0\mathrm{.}22$

Baking Powder $$0\mathrm{.}86$

Cinnamon $$4\mathrm{.}06$

Honey $$0\mathrm{.}77$

Vanilla Extract $$19\mathrm{.}73$

Cornmeal $$0\mathrm{.}40$

Shortening $$0\mathrm{.}86$

Apples $$0\mathrm{.}68$

Peanut Butter $$0\mathrm{.}60$

Water Not Significant

Test Market and Sales Data:

Expected total revenue $($including the owner's match$)$ is $$130.$

Anticipated sales distribution: $58\%$ Peanut Butter Pupcakes $(30$ bundles$),42\%$ Snickerpooch $(22$ bundles$).$

Actual final sales were $$126(28$ bundles each of SP and PB$).$

Purchases Prior to Production:

Detailed breakdown of ingredient quantities and costs.

Production Data:

Total units produced: $114$ treats $($Snickerpooch$)$ and $118$ treats $($Peanut Butter Pupcakes$).$

Resource usage $($in grams$)$ for each ingredient in both product lines.

Now, let's perform the post$-$service analysis, considering both revenue and cost perspectives:

Static Budget Variance:

Calculate the static budget based on the average prices and recipe data.

Compare the static budget with the actual revenue and costs.

Flexible Budget Variance:

Adjust the static budget based on the actual sales volume.

Compare the flexible budget with the actual revenue and costs.

Sales Volume Variance:

Analyze the difference between the flexible budget and the static budget.

Sales Mix Variance:

Examine the impact of the actual sales mix on revenue.

Price Variance:

Assess the impact of actual selling prices on revenue.

Efficiency Variance:

Analyze the efficiency of resource utilization in production.

Mix Variance:

Examine the impact of the actual product mix on costs.

Yield Variance:

Assess any variations in output compared to the standard yield.

Red Flag Analysis:

Identify significant variances and prioritize them based on their impact.

Highlight areas that require immediate attention or further investigation.

Insights and Recommendations:

Provide actionable recommendations to address the identified variances.

Suggest strategies for optimizing costs and improving revenue.

Consider potential adjustments to the product mix or pricing strategy.

Propose measures for enhancing operational efficiency and cost$-$effectiveness.

This comprehensive analysis will offer Nox Box valuable insights into the performance of its product lines, guiding informed decisions for future operations and charitable endeavors.