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As sales manager, Jemmima was given the following static budget report for selling expenses in the Winter Sports Department of Copodo Outdoor Company for the

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As sales manager, Jemmima was given the following static budget report for selling expenses in the Winter Sports Department of Copodo Outdoor Company for the month of November Oopodo Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2017 09 Sou Eavorable Unable Sales in units 4.000 SOOF Variable expenses Sales commissions $120.000 $120.000 $ 8,000 Advertising expense 38.000 41.250 3.250U Travel expense 185,000 202.125 17,125 U Demonstration models given out 90.250 Total variable 19.125 Feed expenses Rent 7.500 7.500 Sales salaries 60.000 60,000 Office salaries 40,000 40.000 Depreciation - vans (sales staff) 2.500 3.000 Total fue 110.000 110.500 Total expenses SEGELBOO S522035 S. 19525 U "The increase in depreciation was due to a new vehicle that had to be purchased as a result of an accident driving on snowy roads on the way to visit a customer As a result of this budget report, Jemmima was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control Jemima knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice Instructions (a) Prepare a budget report based on flexible budget data to help lemmima. () should semmima have been reprimanded? Explain te) After Jemmima because familiar with the flexible budget report, he began to analyze the ma feels that sales can be increased Oopodo Outdoor Company would increase sales commissions to $31 per unit. This would allow them to reduce advertising expense to $8.00 per unit. Semmina thinks that these changes will motivate the sales staff to selat least 5.500 units. He is allowed to try his plan in December and had the following results. Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted fixed costs. Do you think the new plan is valid? Explain Oopodo Outdoor Company Winter Sports Department Results for the Month Ended December 31, 2017 Sales in units Variable expenses Sales commissions $164.000 Advertising expense 42.000 Travel expense 247,000 Demonstration models given out 116.000 Total variable Foed expenses Rent Sales salaries 60,000 Office salaries 40.000 Depreciation - vanales staff Total feed 110.500 Total expenses 5679.500

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