Budgeting at Coca-Cola

Values:

• Budgeted Sales: $110,000,000
• Actual Sales: $105,000,000
• Variable Costs: $55,000,000
• Fixed Costs: $35,000,000

Requirements:

1. Prepare a budget variance report.
2. Calculate the sales volume variance.
3. Analyze the potential reasons for the variance.
4. Discuss corrective actions.