Prepare a profit variance analysis for sell inc

Reference no: EM13903129

Profit variance analysis in a service organization. Sell, Inc., is a marketing consulting firm that earns revenues by billing clients for hours worked. Last year, Sell, Inc.'s billable hours were up 10 percent from expected levels, but, as the following data show, profits were lower than anticipated.

	Actual Results	Master Budget
Billable Hoursa	22,000 Hours	20,000 Hours
Revenue	$2,300,000	$2,000,000
Production Costs:
Professional Salaries (all variable)	1,550,000	1,200,000
Other Variable Costs (e.g., supplies, certain computer services)	250,000	200,000
General Administrative (all fixed)	400,000	400,000
Corporate Client Profit	$ 100,000	$ 200,000

Prepare a profit variance analysis for Sell, Inc.

Reference no: EM13903129

Questions Cloud

Why year two operating profits did not increase despite : Prepare an analysis like Exhibit 10.8 that shows why Year 2 operating profits did not increase despite the increase in revenues.

How would the export demand change : a. Suppose that the PST appreciates relative to the EUR. For the following parts, you will not receive anycredit without providing an explanation.(i) In the UK: How would the export demand change? Why?-

What is the way in which exports are counted : What is the way in which exports are counted in the measurement of Gross Domestic Product (GDP)

International business : The Topic Paper will be on a current topic in international business. The paper must focus on the international aspects of the topic. The paper should have at least four sources other than the textbook, at least five pages in length as to content not..

Prepare a profit variance analysis for sell inc : Sell, Inc., is a marketing consulting firm that earns revenues by billing clients for hours worked. Prepare a profit variance analysis for Sell, Inc.

Describe the focus and activities of each of polaris : Refer to Polaris's financial statements in Appendix A to answer the following.

Do the two stem and leaf plots look similar : Do the two stem and leaf plots look similar? Do you think this could be a viable method for telling whether different articles were written by different authors?

Compare master budget and flexible budget for month of aug : Comprehensive problem. Sports, Inc., produces shirts for sports teams. Compare the master budget, flexible budget, and actual results for the month of August.

Compute the ratio of segment revenue divided : Key figures for Polaris and Arctic Cat follow ($ thousands).

User Account

All Pages