Question
Diego Garcia owns a chain of travel goods stores. Last year, his sales staff sold 10,000 suitcases at an average sale price of $150. Variable
Diego Garcia owns a chain of travel goods stores. Last year, his sales staff sold 10,000 suitcases at an average sale price of $150. Variable expenses were 80% of sales revenue, and the total fixed expense was $110,000. This year, the chain sold more expensive product lines. Sales were 8,000 suitcases at an average price of $200. The variable expense percentage and the total fixed expense were the same both years. Garcia evaluates the chain manager by comparing this years income with last years income.
Requirement
Prepare a performance report for this year, similar to the following figure
How would you improve Garcias performance evaluation system to better analyze this years results?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started