Planning and control, feedback. In April 2009, Sheri Campbell, editor of the Daily Shopping News (DSN), decides to reduce the price per newspaper from $0.84 to $0.70, starting May 1, 2009. Actual paid circulation in April is 4,200,000 (140,000 per day 30 days). Campbell estimates that the $0.14 price reduction will increase paid circulation in May to 6,200,000 (200,000 x 31 days). The actual May circulation turns out to be 6,820,000 (220,000 x 31 days). Assume that one goal of DSN is to increase operating income. The bud- geted increase in circulation would enable DSN to charge higher advertising rates in later months of 2009 if those budgeted gains actually occur. The actual price paid in May 2009 was the budgeted $0.70 per newspaper. REQUIRED 1. Distinguish between planning and control at DSN, giving an example of each. 2. Prepare a newspaper revenue performance report for DSN for May 2009 showing the actual results, budgeted amounts, and the variance. 3. Give two types of action Campbell might take based on feedback on the May 2009 circu- lation revenue.

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