1.The next task for you is to complete the chart found in the posted Excel file. It is the worksheet titled 2009 Performance. Each of the highlighted cells need to be filled in, either with the previous calculations, data from the other exhibits, or new calculations for this page. Note that the chart is asking for the changes to profit as a result of comparing the budget to the actual results. Each input should reconcile the total difference from planned profit to actual profit. When you include this chart in your final report, do not include the entire workbook. Just put this page in your report, likely as an appendix item.

2.Next, identify each variance in the chart as to whether the manager had control over it, or if it was something beyond his control. Determine the operating performance of the manager based on the items he could control. Comment on the operating performance of each manager using this analysis as a base for discussion.

Compagnie du Froid, 5.A. Exhibit 1 Examples of Standards for the 2009 Profit Plan (Spanish Region) Standards Percentage of volume from specialties Spain 10% Selling prices (in Euros) Ice-cream (per litre) Specialties (per litre) 4.42 8.13 Manufacturing costs in Euros) Dairy ice-cream (per litre) Other ingredients ice-cream (sugar, flavor, etc. per 100 grams) Other ingredients specialties (sugar, flavor, etc. per 100 grams) Labor (wage per hour) Labor hours ice-cream (litres per hour) Labor hours specialties (litres per hour) 2.61 1.51 2.12 8.13 107.20 11.04 72% Volume Dairy ingredients-ice-cream (% of volume) Other ingredients-ice cream (grams per litre) Dairy ingredientsspecialties (% of volume) Other ingredientsspecialties (grams per litre) 48 93% Exhibit 2 French Region, 2009 Results Variance hoat Plan Volume Euros 000) (000) Actual Volume Euros C000) (000) 2 Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Revenue from distribution Total Sales 4,010 445 17.870 3,661 4,618 405 20.005 3,377 .128 (284) F U 4,455 21,540 5,023 23,461 1 ,921 F Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2,887 1,844 38.29 7,893 2,841 371 3,317 2,047 43.56 0,142 3,188 438 (1.240) (345) (67) U U U 410 Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 1.121 693 368 298 36.02 100 38 316 F 1,015 855 3.02 8,663 40.03 388 8,233 430 F C Other Costs Supervision, energy, maintenance,... Depreciation Operating margin 2,200 487 2,324 5,872 4ez 5,560 - Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Allocated central office expenses Profits before Interest and Taxes 861 507 1.078 1,141 908 510 1,139 1,070 810 mccnccc 788 192 1.242 1027 Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation e 2,322) Total identifiable assets 580 4.713 5.387 47720 5501 Conditions for tourism Average summer temperature 29.8 C 20.3C 29.2C 20.2C Exhibit 3 Italian Region, 2009 Results Variance Profit Plan Actual Volume Euros Volume Euros 7000) (000 000000) Sales Data Sales ice-cream (volume in litres) Sales Specialties (litres) Total Sales 2.453 272 2725 10,987 2.232 13.199 2,480 276 2,756 11,100 2 253 13,359 Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 4.983 1,864 1,275 33. 10 1,885 300 1,895 1,296 36.03 4,086 1,032 328 ccc 670 Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 259 196 24 24 889 425 220 257 197 23.29 430 " nan 212 4.717 4,795 Other Costs Supervision, energy, maintenance,... Depreciation Operating margin 1,142 109 3,466 1,135 109 3,551 " " 329 315 108 344 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 198 314 1,328 558 122 1.288 "c C ca " 574 122 193 ASA 517 108 (14) Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 3.200) Total identifiable assets 377 357 2.764 2.229 Conditions for tourism Average summer temperature 29.7C 29.8C Exhibit 4 Spanish Region, 2009 Results V ariance Poth Plan Volume Euros rooo (000) Actual Volume Euros 000 (000) Sales Data Sales ice-cream (volume in litres) Sales Specialties (litres) Total Sales 3,685 409 4,094 16.294 3.330 19,624 3,575 15,507 400 __ 3.251 3,975 18,758 (8663 Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2,653 1,769 34.37 6.923 2,670 279 2,175 1,450 29.21 2.202 238 1,318 468 381 033 Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 299 37.09 571 994 633 301 7.824 362 275 34.73 283 8,924 1.100 Other Costs Supervision, energy, maintenance,... Depreciation Transfer from France Operating margin 2,145 391 2.168 301 2.120 4.241 5,288 2.120) (1.047) 730 413 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Subcontracted transportation Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 827 1,400 620 100 758 (22) 424 (11) 77 786 1.408 844 100 193 11491_111772 158 _1028 98 Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 1.680) Total identifiable assets 268 423 4.744 1266 4.827 5.201 Conditions for tourism Average summer temperature 30.2C 28.5C Compagnie du Proid, S.A. Exhibit 5 2009 Ice cream Transfers between France and Spain Ice-cream Cost of ingredients Cost per litre Total (in '000 Euros) 003 Volume transferred (in "litres) 2.78 Actual Costs (in Euros) Dairy Ingredients Other Ingredients Labor 1.56 1.98 0.69 0.00 1,104 410 0.09 Allocated Fixed Costs (in Euros) Other costs Depreciation S&A expenses 0.46 0.00 0.04 5% profit margin 0.17 Total transfer price 3.53 2.126 Exhibit 6 Historical Data-Temperature and Sales Volume Volume Growth 8.7% 15.5% 18.5% France Year Temperature Sales Volume (desrees Celsius (000 litres) 1995 27.7 1.344 1990 29.2 1.435 1997 28.4 1,484 1998 30.9 1,714 1999 32.9 2,031 2000 27.3 1.984 30.0 2.208 30.5 2.489 2003 2.781 2004 30.0 2,998 2005 20.7 3,216 2000 3,445 2007 3,797 2008 20.4 4,087 2000 (budget) 4,455 Average 29.8 C 11.3% 12.7% 10.0% 30.8 30.3 20.0 7.3% 7.1% 10.2% 7.6% 9.0% 9.1% 29.0 Spain Year Temperature Sales Volume Volume Growth (degrees Celsius) (000 litres 1996 30.8 1.080 1990 31.2 1.272 18.9% 1007 1.402 10.2% 1998 31.6 1.885 20.2% 1999 1.852 2000 2.008 8.3% 2001 1.984 -2.1% 2002 2.033 3.5% 2003 2.231 0.8% 2004 2.481 11.2% 2005 2.684 8.2% 2008 32.4 3.038 13.1% 2007 30.4 3.346 10.2% 2008 31.0 3.722 11.3% 2000 (budget) 4,094 10.0% Average 10.2% co 29.0 30.4 31.8 30.2 C 2009 Perfomance Fill in the highlighted cells to complete the chart Note that this is a changes analysis, not a total analysis. Italy France 1,027 459 Original Plan Profit Competitive Effectiveness Temperature Adjustment Market Share (excluding transfer) Sales Mix Product Price (59) (187) Operating Efficiency Corporate Allocation Shipments to Spain Delivery Operations Rounding Actual Profit in Euro Change in Profit from Plan 1,242 215 Identifiable Assets (Planned) Identifiable Assets (Actual) Return on Identifiable Assets Planned Reported Profit Reported Profit less Transfer Identifiable Assets % of Sales Planned Reported Profit Reported Profit less Transfer * There is a small rounding error in the French division total. This amount reconciles that rounding error. Compagnie du Froid, 5.A. Exhibit 1 Examples of Standards for the 2009 Profit Plan (Spanish Region) Standards Percentage of volume from specialties Spain 10% Selling prices (in Euros) Ice-cream (per litre) Specialties (per litre) 4.42 8.13 Manufacturing costs in Euros) Dairy ice-cream (per litre) Other ingredients ice-cream (sugar, flavor, etc. per 100 grams) Other ingredients specialties (sugar, flavor, etc. per 100 grams) Labor (wage per hour) Labor hours ice-cream (litres per hour) Labor hours specialties (litres per hour) 2.61 1.51 2.12 8.13 107.20 11.04 72% Volume Dairy ingredients-ice-cream (% of volume) Other ingredients-ice cream (grams per litre) Dairy ingredientsspecialties (% of volume) Other ingredientsspecialties (grams per litre) 48 93% Exhibit 2 French Region, 2009 Results Variance hoat Plan Volume Euros 000) (000) Actual Volume Euros C000) (000) 2 Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Revenue from distribution Total Sales 4,010 445 17.870 3,661 4,618 405 20.005 3,377 .128 (284) F U 4,455 21,540 5,023 23,461 1 ,921 F Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2,887 1,844 38.29 7,893 2,841 371 3,317 2,047 43.56 0,142 3,188 438 (1.240) (345) (67) U U U 410 Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 1.121 693 368 298 36.02 100 38 316 F 1,015 855 3.02 8,663 40.03 388 8,233 430 F C Other Costs Supervision, energy, maintenance,... Depreciation Operating margin 2,200 487 2,324 5,872 4ez 5,560 - Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Allocated central office expenses Profits before Interest and Taxes 861 507 1.078 1,141 908 510 1,139 1,070 810 mccnccc 788 192 1.242 1027 Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation e 2,322) Total identifiable assets 580 4.713 5.387 47720 5501 Conditions for tourism Average summer temperature 29.8 C 20.3C 29.2C 20.2C Exhibit 3 Italian Region, 2009 Results Variance Profit Plan Actual Volume Euros Volume Euros 7000) (000 000000) Sales Data Sales ice-cream (volume in litres) Sales Specialties (litres) Total Sales 2.453 272 2725 10,987 2.232 13.199 2,480 276 2,756 11,100 2 253 13,359 Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 4.983 1,864 1,275 33. 10 1,885 300 1,895 1,296 36.03 4,086 1,032 328 ccc 670 Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 259 196 24 24 889 425 220 257 197 23.29 430 " nan 212 4.717 4,795 Other Costs Supervision, energy, maintenance,... Depreciation Operating margin 1,142 109 3,466 1,135 109 3,551 " " 329 315 108 344 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 198 314 1,328 558 122 1.288 "c C ca " 574 122 193 ASA 517 108 (14) Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 3.200) Total identifiable assets 377 357 2.764 2.229 Conditions for tourism Average summer temperature 29.7C 29.8C Exhibit 4 Spanish Region, 2009 Results V ariance Poth Plan Volume Euros rooo (000) Actual Volume Euros 000 (000) Sales Data Sales ice-cream (volume in litres) Sales Specialties (litres) Total Sales 3,685 409 4,094 16.294 3.330 19,624 3,575 15,507 400 __ 3.251 3,975 18,758 (8663 Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2,653 1,769 34.37 6.923 2,670 279 2,175 1,450 29.21 2.202 238 1,318 468 381 033 Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 299 37.09 571 994 633 301 7.824 362 275 34.73 283 8,924 1.100 Other Costs Supervision, energy, maintenance,... Depreciation Transfer from France Operating margin 2,145 391 2.168 301 2.120 4.241 5,288 2.120) (1.047) 730 413 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Subcontracted transportation Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 827 1,400 620 100 758 (22) 424 (11) 77 786 1.408 844 100 193 11491_111772 158 _1028 98 Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 1.680) Total identifiable assets 268 423 4.744 1266 4.827 5.201 Conditions for tourism Average summer temperature 30.2C 28.5C Compagnie du Proid, S.A. Exhibit 5 2009 Ice cream Transfers between France and Spain Ice-cream Cost of ingredients Cost per litre Total (in '000 Euros) 003 Volume transferred (in "litres) 2.78 Actual Costs (in Euros) Dairy Ingredients Other Ingredients Labor 1.56 1.98 0.69 0.00 1,104 410 0.09 Allocated Fixed Costs (in Euros) Other costs Depreciation S&A expenses 0.46 0.00 0.04 5% profit margin 0.17 Total transfer price 3.53 2.126 Exhibit 6 Historical Data-Temperature and Sales Volume Volume Growth 8.7% 15.5% 18.5% France Year Temperature Sales Volume (desrees Celsius (000 litres) 1995 27.7 1.344 1990 29.2 1.435 1997 28.4 1,484 1998 30.9 1,714 1999 32.9 2,031 2000 27.3 1.984 30.0 2.208 30.5 2.489 2003 2.781 2004 30.0 2,998 2005 20.7 3,216 2000 3,445 2007 3,797 2008 20.4 4,087 2000 (budget) 4,455 Average 29.8 C 11.3% 12.7% 10.0% 30.8 30.3 20.0 7.3% 7.1% 10.2% 7.6% 9.0% 9.1% 29.0 Spain Year Temperature Sales Volume Volume Growth (degrees Celsius) (000 litres 1996 30.8 1.080 1990 31.2 1.272 18.9% 1007 1.402 10.2% 1998 31.6 1.885 20.2% 1999 1.852 2000 2.008 8.3% 2001 1.984 -2.1% 2002 2.033 3.5% 2003 2.231 0.8% 2004 2.481 11.2% 2005 2.684 8.2% 2008 32.4 3.038 13.1% 2007 30.4 3.346 10.2% 2008 31.0 3.722 11.3% 2000 (budget) 4,094 10.0% Average 10.2% co 29.0 30.4 31.8 30.2 C 2009 Perfomance Fill in the highlighted cells to complete the chart Note that this is a changes analysis, not a total analysis. Italy France 1,027 459 Original Plan Profit Competitive Effectiveness Temperature Adjustment Market Share (excluding transfer) Sales Mix Product Price (59) (187) Operating Efficiency Corporate Allocation Shipments to Spain Delivery Operations Rounding Actual Profit in Euro Change in Profit from Plan 1,242 215 Identifiable Assets (Planned) Identifiable Assets (Actual) Return on Identifiable Assets Planned Reported Profit Reported Profit less Transfer Identifiable Assets % of Sales Planned Reported Profit Reported Profit less Transfer * There is a small rounding error in the French division total. This amount reconciles that rounding error