N1

BigRev reported the following information:

Budget Actual Price $15 $16 Market size (units) 15,000 16,000 Market share 10% 9%

Complete the following reconciliation:

Enter your answers as numbers without commas or spaces. For example: Enter3500.50, not3,500.50. For variances, use a positive number for favourable, and a negative number (prefix with -) for unfavourable.

Budgeted revenue

+/- Market size variance

+/- Market share variance

= Flexible budget variance

+/- Price variance

= Actual revenue

N2

Advant reported the following information:

Budget Actual Price $10 $10.50 Market size (units) 12,000 13,000 Market share 17% 14%

What was the quantity variance ($)?

Use a positive number for favourable, and a negative number for unfavourable.

N3

A] Productions has provided the following variance report for the year ended 30 June 2022 $000 Budgeted prot 3,000 Variance due to change in quantity sold 6,300 Favourable Flexible budget prot [quantity adjusted) 9,300 Variance due to change in price 2,420 Favourable Variance due to change in variable cost [3,630] Unfavourable Variance due to change in fixed cost [1,500] Unfavourable Actual prot 6,590 a) Assume the change in xed cost was entirely due to a social media marketing campaign that enabled the company to charge a higher price. Was this marketing campaign justied? Why? b) In an increasingly competitive market, the company decided to enhance product features in order to drive sales volume. Doing so resulted in an increase in variable costs. Was the product enhancement justied? What other information would assist in answering this question? c) Notwithstanding the actual profit exceeded budget, in order to better assess performance of the business, what other information would you like to see? Let's suppose the budgeted market size was 10,000 units and budgeted market share was 10%. This resulted in budgeted revenue of $50m. Actual market size was 13,000 units, price was $52 and 1,210 units were sold. d) Provide a reconciliation of budgeted revenue to actual revenue e) What is the value in identifying separate variances for market size and market share? Let's suppose you're the Head of Premium Classes (including business and first class) for a major international airline based in the UAE. You have recently recast your mission for first class as follows: We will offer the world's best first class experience. We will achieve this by offering a superior first class suite & cabin environment, the most innovative onboard facilities & services, exceptional catering and the most attentive staff. Thinking about the Balanced Scorecard, what performance metrics would provide you with insight into your performance towards your mission? What things would you want measured and reported to you