The overarching goal is to calculate the performance ratio variances for New Car Sales, Used Car Sales, and Repairs for 20x6.

The learning objectives are to utilize variance analysis to evaluate the performance of Prestige Auto’s business segments, prepare a memorandum to management that communicates variance results clearly, and use basic Excel commands to complete the analysis.

The data worksheets used in this analysis are Income Statement 12-31-x6, Balance Sheet 12-31- 20x6, and Annual Performance Comparison (APC). The template to complete is DB Problem 12.2 Template.

Do the following:

Enter the results from the APC worksheet.

Calculate the performance ratios for 20x6.

Calculate the performance ratio variances for 20x6.

Enter the calculated variance including type of rate and whether the variance is favorable or unfavorable.

REQUIRED:

a. Complete the worksheet DB Problem 12.2 Template and turn it in.

b. Which division looks best now? Why?