please answer correctly in full organized and use the accounts providedin return you will get a thumbs up thank tou
As sales manager, Hank Short was given the following static budget report for seling expenses in the Winter Sports Department of Jennings Outdoor Company for the month of November Jennings Outdoor Company Winter Sports Department Budget Report For the Month Ended November 30, 2020 Difference Favorable F Budget Actual Unfavorable U Sales in units 4,000 4,500 500 F Variable expenses Sales commissions $112,000 $118,600 $6,600 Advertising expense 40,000 43,500 3,500 Travel expense 184.000 201.600 17,600U Demonstration models given out 96,000 86,300 9,700 F Total variable 432,000 450,000 18,000 U Fixed expenses 8,100 8,100 Sales salaries 59.400 59.400 -0- Office salaries 40.200 40,200 -0- Depreciation - vans (sales staff) 2,600 3,000 400 U Total fixed 110,300 110.700 400 U Total expenses $542,300 $560,700 $18.400 U Rent -0. Jennings Outdoor Company Winter Sports Department Flexible Budget Report For the Month Ended November 30, 2020 Per Unit Budget Actual Sales in Units 4500 Variable Expenses 28 Sales Commissions 126000 11 Advertising Expense 10 45000 46 Travel Expense 207000 20 Free Demonstration Models 24 108000 Total Variable 108 486000 45 Fixed Expenses Jennings Outdoor Company Winter Sports Department Flexible Budget Report For the Month Ended November 30, 2020 Difference Favorable Unfavorable Budget Neither Favorable nor Unfavorable Actual 4500 4500 126000 $ 18600 7400 Favorable 45000 43500 1500 Favorable 207000 201600 5400 Favorable 108000 86300 21700 Favorable 486000 450000 36000 Favorable Per Unit Budget Actua Sales in Units 4500 Variable Expenses Sales Commissions $ 10 45000 Travel Expense 46 207000 Free Demonstration Models 24 108000 Total Variable $ > 108 486000 Fixed Expenses Rent 8100 Sales Salaries 59400 Office Salaries 40200 Depreciation - Auto (Sales Staff) 2600 Total Fixed 110300 11 Total Expenses $ 596300 Neither Favorable nor Unfavorable Budget Actual 4500 4500 126000 $ 118600 7400 Favorable 45000 43500 1500 Favorable 207000 201600 5400 Favorable 108000 86300 21700 Favorable 486000 450000 36000 Favorable 8100 8100 0 Neither favorable nor Unfavorable 59400 59400 0 Neither Favorable nor Unfavorable 40200 40200 0 Neither Favorable nor Unfavorable 2600 3000 400 Unfavorable 110300 110700 400 i Unfavorable 596300 560700 $ 35600 i Favorable (c) After Hank because familiar with the flexible budget report, he began to analyze the numbers. Hank feels that sales can be increased if Jennings Outdoor Company would increase sales commissions to $29.00 per unit. This would allow them to reduce advertising expense to $8.00 per unit. Hank thinks that these changes will motivate the sales staff to sell at least 5,400 units. He is allowed to try his plan in December and had the following results. Jennings Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 Sales in units 5.400 Variable expenses Sales commissions $150,000 Advertising expense 41,200 Travel expense 241,000 Demonstration models given out 108.400 Total variable 540,600 Fixed expenses Rent 8,100 Sales salaries 59.400 Office salaries 40,200 Depreciation - vans (sales staff) 3,000 Total fixed 110.700 Total expenses 5651,300 5. 6 8 Jennings Outdoor Company Winter Sports Department Flexible Budget Report Per Unit Budget Actual Advertising Expense Depreciation - Auto (Sales Staff) Fixed Expenses Free Demonstration Models Office Salaries Rent Sales Commissions Sales in Units Sales Salories Total Expenses Total Fixed Total Variable Travel Expense Variable Expenses 0.33/1 Jennings Outdoor Company Winter Sports Department Flexible Budget Report December 31, 2020 For the Month Ended December 31, 2020 For the Year Ended December 31, 2020 Difference Favorable Unfavorable Budget Actual Neither Favorable nor Unfavorable $ > > 0.33/1 V $ $ > > > $ Do you think the new plan is valid? Explain. It appears that the new plan is a as favorable total variance is by $ higher lower e Textbook and Media
