Question
Cyclops Cycles manufactures two models of dirtbikes for the Alberta market, the Pegasus and the Phoenix models. Based on a projected Alberta market size of
Cyclops Cycles manufactures two models of dirtbikes for the Alberta market, the Pegasus and the Phoenix models.
Based on a projected Alberta market size of 9,600 dirtbikes sold Cyclops budgeted the following 2021 results:
2,000 Pegasus models sold @ a contribution margin of $3,500 each
1,200 Phoenix models sold @ a contribution margin of $4,200 each
At the end of 2021 Cyclops determined that 10,000 dirtbikes had been sold Alberta-wide. The actual results for Cyclops were:
2,394 Pegasus models sold @ $3,200 contribution margin per unit
1,409 Phoenix models sold @ $4,100 contribution margin per unit
Required:
Make a solution in Excel similar to the ones done in class:
- Finish a Management Variance Report like the ones we did in class and are on Moodle.
- Comment on the four variances management would find most actionable and explain their specific causes in Cyclops's case. Be specific in your comments and explanations.
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