Question
Operating Statement: Fiscal Year Ended March 2003, Actual Plan Sales 327,360 399,750 Taxes 79,360 66,625 Discounts 86800 83282 Net Sales 161,200 249,843 Cost of
Operating Statement: Fiscal Year Ended March 2003,
Actual
Plan
Sales
327,360
399,750
Taxes
79,360
66,625
Discounts
86800
83282
Net Sales
161,200
249,843
Cost of Sales
52,800
66,625
Production Costs
26,600
33,312
Gross profit
81,800
149,906
Advertisement Expense
12,850
16,656
Promotion Expense
20,600
26650
Direct Contribution
48,350
106,600
Selling Expenses
5,100
6,662
Distribution Costs
7,220
9994
Net Sales Contribution
36,030
89,944
General & Administrative Expenses
19,150
20000
Operating Profit
16,880
69,944
Supporting Data:
Actual
Plan
Sales Volume (thousands of 9-litre cases)
6,200
8,200
% Sales on-premise
40%
50%
% Sales off-premise
60%
50%
Gross average price on-premise
57.75
52.5
Net average price on-premise
28.44
32.8
Gross average price off-premise
49.5
45
Net average price off-premise
24.38
28.12
Excise taxes
32%
20%
Questions:
1. Calculate flexible expense budget basis the actual volume of 2003.
2.What were the major factors that contributed to the difference between actual net sales and planned net sales for 2003? - Revenue Variances
3.Calculate detailed reconciliation of actual profits and planned profit for 2003. What conclusions might you draw from this reconciliation? - Statement of Reconciliation
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