Luxom (Pty) trd provides concierge services to high net worth clients. The company has asked you to provide an analysis of the expected versus the actual results for the month of June based on the actual financial information. extracted from their records. The company informs you that apart from where noted (notes a-e), the performance was in line with the budget. Notest a. 5% of this cont was wasted due to technical breakdown of the communication service. b. This cost was 7 hhigher than the budged cost due to time spent by drivers becaure of poor directions. 6. 10 percent of this cost was paid to a mediator to address customer complaints. d. Vehicles are used to provide concierge services, except for the company car of the cEO. The Crors car was purthased on the lut of zune and this expense was not provided for in the original fune budget. The depreciation 17 on the CEO's car was A2 000 and the cost of the service plan on his vehicle amounted to isoo. e The CEO agreed to a 127 pay cut if the compamy would purchase a car and make it available for his use. Kequired a) Using the principien of differential cost ahalysi, compile a traditional income statement firms- alie known as an absorption cost income statenent) with three colums as indicated below. the firt line has been entered for b) Comiment on the impact on the cous profa magin, an well at the cperating prefit markin of the corpany (13 maris) bated on vour asdisia in part a ROUNo AMOUNTS 10 mat NtMIST MWo Luxom (Pty) trd provides concierge services to high net worth clients. The company has asked you to provide an analysis of the expected versus the actual results for the month of June based on the actual financial information. extracted from their records. The company informs you that apart from where noted (notes a-e), the performance was in line with the budget. Notest a. 5% of this cont was wasted due to technical breakdown of the communication service. b. This cost was 7 hhigher than the budged cost due to time spent by drivers becaure of poor directions. 6. 10 percent of this cost was paid to a mediator to address customer complaints. d. Vehicles are used to provide concierge services, except for the company car of the cEO. The Crors car was purthased on the lut of zune and this expense was not provided for in the original fune budget. The depreciation 17 on the CEO's car was A2 000 and the cost of the service plan on his vehicle amounted to isoo. e The CEO agreed to a 127 pay cut if the compamy would purchase a car and make it available for his use. Kequired a) Using the principien of differential cost ahalysi, compile a traditional income statement firms- alie known as an absorption cost income statenent) with three colums as indicated below. the firt line has been entered for b) Comiment on the impact on the cous profa magin, an well at the cperating prefit markin of the corpany (13 maris) bated on vour asdisia in part a ROUNo AMOUNTS 10 mat NtMIST MWo
