Question
David Perze owns a chain of travel goods stores, Perez Travel Goods. Last year, his sales staff sold 15,000 suitcases at an average sale price
David Perze owns a chain of travel goods stores, Perez Travel Goods. Last year, his sales staff sold 15,000 suitcases at an average sale price of $150. Variable expenses were 85% of sales revenue, and the total fixed expense was $170,000. This year, the chain sold more expensive product lines. Sales were 12,000 suitcases at an average price of $250. The variable expense percentage and the total fixed expenses were the same both years. Perez evaluates the chain manager by comparing this year's income with last year's income. Prepare a performance report for this year. How would you improve Perez's performance evaluation system to better analyze this year's results? Begin by preparing a performance report. (Complete all answer boxes. Enter a "0" for zero amounts.) Save Accounting Table... + Copy to Clipboard... + Perez Travel Goods Income Statement Performance Report This Year Last Year Variance Number of suitcases sold Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income
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