Congratulations you have just been hired by Knight's Company! Your job is to prepare their monthly performance report. The report is presented to management each month. Report includes the following: 1. A Master budget versus actual analysis for the contribution margin income statement. The format of the report is a four column report, with Actual data, Master Budget data, the dollar amount of the variance and the variance %. The Variance percentage is calculated by dividing the budget variance by the budgeted dollar amount. 2. An analysis of Return on Sales, Return on Investment, Capital Turnover and Residual Income. These four performance measurements are calculated for the budgeted and actual data. They also include a budget variance for these items (but they do not calculate a variance % for these items.) Prepare the performance report for Knight's Company. Make your own conclusions about their budgeted versus actual performance. 3. Calculate the Flexible Budget Variance and Volume Variance for Sales, Variable Costs, Contribution Margin , Fixed Costs and Operating income in a separate analysis from the Master Budget Performance report. See the template at the bottom of this page which should help you finish the model. Just put formulas in the grey boxes. Hints 1. When you create your formulas for variances (for the 1st performance report below) when comparing Actual Performance to the Master Budget, in order to have the variances show minus signs if they are unfavorable follow these instructions: For things that you want more of as a business owner, because they increase income , subtract the Master Budget number from the actual number. (Sales, Contribution Margin, Operating Income. This rule also applies to ROS, ROI, Capital Turnover and Residual Income because "more is better" with these performance indicators as well. For things that you want less of as a business owner,because they decrease net income, subtract the actual number from the Master Budget number(Variable Costs and Fixed Costs) 2. Format your Variance %'s , ROS and ROI as a percent (find the % button up on the toolbar and click it while your cursor is in that cell). Also, format the number so it shows one decimal place. You can do that by clicking the icon on the toolbar that has a left hand arrow & zeros on it. 3. Format your Residual income to be a dollar amount. One way to do this is through "format" at the top of the screen, then "cells", then "number", then select "currency". 4. Format your Capital Turnover as a number with two decimal places. Knights Company:

		Actual	Master Budget	Master Budget Variance	Variance %
Sales
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
Return on Sales
Return on Investment
Capital Turnover
Residual Income
Flexible Budgeting Analysis (some formulas have already been inserted in the green boxes to give you a head start)
Insert formulas in the grey boxes.
		Actual Results	Flexible Budget Variance*	Flexible Budget	Volume Variance*	Master Budget
Total Sales
Total Variable Costs
Total Contribution Margin
Fixed Costs
Operating Income PLEASE HELP ME! I need help with the formulas! I attempted to do this assignment but i get a few wrong and not sure which ones i got wrong!