2)

1. Fill in the blanks For a production department: $Budget $Actual $Variance U/F Sales Revenue $70,000 $60,000 $15,000 $20.000 Labour Costs $30,000 $26,000 Energy Costs I $10.000 $9.000 Fixed Rent $10.000 $10.000 Operating Profit 3. Your company makes BBQ's from scratch - that is to say you currently make all of the components for the BBQ's from their raw materials (sheet metal, paint, nuts & bolts, etc.) Component "A", of which you make 2000 units per month, costs you $28.00 in variable costs per unit and $10.00 per unit in fixed costs, for a total cost of $38 per unit based on the 2000 units per month. A supplier has offered to sell you 2000 units per month of component "A" for $30.00 per unit. Should you accept? Explain your answer. Are there other issues besides dollars and cents