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I-33 Planning and Control, Management by Exception Study the framework for planning and control of a Starbucks store in Exhibit 1-2 on page 7 .

image text in transcribed I-33 Planning and Control, Management by Exception Study the framework for planning and control of a Starbucks store in Exhibit 1-2 on page 7 . Suppose that for next year a particular store budgeted revenue of $356,400, an 8% increase over the current revenue of $330,000. The actions listed in Exhibit 1-2 resulted in six new budgeted products and a total advertising budget of $33,000. Actual results were as follows: 1. Prepare a performance report for revenues and advertising costs using the format of Exhibit 1-3 on page 8. 2. Suppose the remaining cost elements of net income were not available until several months after the store implemented the plan. The net income results were disappointing to managementprofits declined even though revenues increased because costs increased by more than revenues. List some factors that might have caused costs to increase so much and that management may not have considered when it formulated the store's plan

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