Please do a variance analysis for below :- Try to break out the strategic profitability variances.. The Italian division is probably the most straight-forward of the three. Please do a full variance analysis for this division.
Profit Plan Actual Varlance Volume Euros Volume Euros Sales Data Sales ice-cream (volumeIn litres) Sales specialti es (ll tres 2,453 10,967 232 13,199 2,450 75 2,756 11,106 139 F Total Sales 2,725 13,359 160 F Cost of Goods Sold Costice-cream DalryIngredlents (litres) Other Ingredients (100 gr.) Labor (hours) 1,864 1,275 33.10 4,963 1,885 300 1,895 1,296 36.03 4,986 328 Costspecialtes Dalry ingredlents (litres) Other Ingredlents (100 gr.) Labor (hours) 259 196 24 24 689 425 220 4,717 257 197 23.29 676 430 212 4,795 78 F Other costs Supervislon, energy, mal ntenance, Depreciation 1,142 109 3,466 109 Operating margin Selling and Adminlstratlve Expenses 3,551 85 F Dellvery expenses Deprecl ation of trucks Sel ling expenses Advertising Adminlstrative salarles and expenses Rent All ocated central office expens es 198 314 1,328 558 122 198 344 40 F 574 122 193 517 Proflts Before Interest and Taxes 459 Identlflable Assets Cash (average) Accounts rece vable (average) Plant and equi pment (net of depreclation 108 357 2,764 3,229 377 3,200) Total dent Iflable Assets 3,234 Conditlons for tourlsmm Average summer temperature 29.7 Expected growth ROI 14.2 15.0% Italy Sales Volume 000 litres Year Volume Growth Temperature degrees Celsius 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (budget) 32.2 30.4 28.6 31.8 28.1 28.2 29.0 28.3 30.1 30.0 892 1,036 1,143 1,434 1,508 1,639 1,771 1,872 2,090 2,433 2,725 16.1% 10.3% 25.6% 5.1% 8.7% 8.0% 5.7% 16.4% 12.0% Average 29.7 12.0% Temperature coefficient (rounded) 3% Profit Plan Actual Varlance Volume Euros Volume Euros Sales Data Sales ice-cream (volumeIn litres) Sales specialti es (ll tres 2,453 10,967 232 13,199 2,450 75 2,756 11,106 139 F Total Sales 2,725 13,359 160 F Cost of Goods Sold Costice-cream DalryIngredlents (litres) Other Ingredients (100 gr.) Labor (hours) 1,864 1,275 33.10 4,963 1,885 300 1,895 1,296 36.03 4,986 328 Costspecialtes Dalry ingredlents (litres) Other Ingredlents (100 gr.) Labor (hours) 259 196 24 24 689 425 220 4,717 257 197 23.29 676 430 212 4,795 78 F Other costs Supervislon, energy, mal ntenance, Depreciation 1,142 109 3,466 109 Operating margin Selling and Adminlstratlve Expenses 3,551 85 F Dellvery expenses Deprecl ation of trucks Sel ling expenses Advertising Adminlstrative salarles and expenses Rent All ocated central office expens es 198 314 1,328 558 122 198 344 40 F 574 122 193 517 Proflts Before Interest and Taxes 459 Identlflable Assets Cash (average) Accounts rece vable (average) Plant and equi pment (net of depreclation 108 357 2,764 3,229 377 3,200) Total dent Iflable Assets 3,234 Conditlons for tourlsmm Average summer temperature 29.7 Expected growth ROI 14.2 15.0% Italy Sales Volume 000 litres Year Volume Growth Temperature degrees Celsius 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (budget) 32.2 30.4 28.6 31.8 28.1 28.2 29.0 28.3 30.1 30.0 892 1,036 1,143 1,434 1,508 1,639 1,771 1,872 2,090 2,433 2,725 16.1% 10.3% 25.6% 5.1% 8.7% 8.0% 5.7% 16.4% 12.0% Average 29.7 12.0% Temperature coefficient (rounded) 3%
