Gamma Company provided you, as a consultant, the following information

Required: Discuss the performance of the company for the past year. Show your workings.

Actual Volume ('000) Profit Plan American Dollars ('000) Volume ('000) American Dollars ('000) 5125 55555 5360 Sales Data Sales cheese (volume in litres) Sales yogurt' (litres) Total sales 650 5775 13520 69075 518 5878 56280 13209 69489 Cost of Goods Sold 4100 2050 20.5 27798 7380 4824 2412 26.8 26532 8449 492 536 Cost of cheese Dairy ingredients (litres) Other ingredients (100gr.) Labor (hours) Cost of yogurt Dairy ingredients (litres) Other ingredients (100gr.) Labor (hours) Contribution margin 585 1811 3510 2080 978 130 52.16 362.2 129.5 41.44 1813 1036 26837 29312 Other costs Supervision, energy, maintenance Depreciation 7940 7860 1680 1750 Operating margin 17297 19622 2764 2915 1631 3461 1643 3656 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Rent Allocates central office expenses Profit before interest and taxes 3662 2530 399 3444 2601 399 617 517 2333 4347