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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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