Doggy World operates a chain of pet stores in the South. The manager of each store reports to the region manager, who in turn reports to headquarters in Atlanta, Georgia. The actual income statements for the Miami store, the Florida region (including the Miami store), and the company as a whole (including the Florida region) for July 2008 are:

Budgeted amounts tor July were as follows:

Requirements

1. Prepare a report for July 2008 that shows the performance of the Miami store, the Florida region, and the company as a whole. Follow the format of Exhibit 22-19 on page 1124.

2. As the Florida region manager. would you investigate the Miami store on the basis of this report: Why or why not?

3. Briefly discuss the benefits of budgeting. Base your discussion on Dogg: World's performance report.

 

Transcribed Image Text:

Revenue Expenses: Region manager/headquarters office Cost of materials Salary expense Other operating expenses Total expenses Operating income Miami $148,900 Florida $1,647,000 $ - 81,100 $ 60,000 871,900 415,100 171,900 38,300 13,600 133,000 $ 15,900 $ 128,100 1,518,900 Companywide $4,200,000 $ 116,000 1,807,000 1,119,000 873,000 3,915,000 $ 285,000