Solution-Calculate the sales variances for bennett

Calculate the sales variances for bennett

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Reference no: EM132560991

Bennett limited provides mobile library services to the community of longbourn. bennett has preliminary operating results for the first year and the company found that net income is different from expected.Eizabeth , the controller has asked your assisstance in determining why this was the case.

operating results:

1. bennett based its budget on a 90% market share with a total market size of 13000 customers split 60% to regular customers and 40% to deluxe.

2. market size was actually 14200 customers

3. regular library services are budgeted at a selling price of $90 per person per quarter

4. deluxe library services are budgeted at a selling price of $120 per person per quarter

5. Actual selling prices for the quarter were $92 and $125 for the regular and deluxe services

Actual budgeted

Sales

regular $690000 $631800

deluxe $587500 $561600

Expenses

Variable:

Program costs,regular $174180 $168480

Program costs , deluxe $203220 $196560

Fixed:

Delivery services $103936 $102750

Amortisation books and vans $122000 $122000

Administration $80000 $80000

Marketing $90000 $90000

Required:

Question 1: Calculate the sales variances for Bennett and state for Elizabeth what each variance indicates.

Reference no: EM132560991

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Calculate the sales variances for bennett

Reference no: EM132560991

Reference no: EM132560991

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