Please use the picture to help me to calculate the sales volume variance calculations in France, Italy, Spain, and sales mix variance calculations in these three countries, and calculations for the effect of incorrect temperature assumptions on sales in France, Italy, Spain, and calculations of the effect of using a different transfer price on the performance of France and Spain.
Please write down the detailed steps!!!!
Compagnie du Troid, S.A. 197-085 Exhibit 1 Examples of Standards for the 2009 Profit Plan (Spanish Region) Standards Percentage of volume from specialties Spain 10% Selling prices (in Euros) Ice-cream (per litre) Specialties (per litre) 4.42 8.13 Manufacturing costs (in Euros) Dairy ice-cream (per litre) Other ingredients ice-cream (sugar, flavor, etc. per 100 grams) Other ingredients specialties (sugar, flavor, etc. per 100 grams) Labor (wage per hour) Labor hours ice-cream (litres per hour) Labor hours specialties (litres per hour) 2.61 1,51 2.12 8.13 107.20 11.04 Volume Dairy ingredients-ice-cream (% of volume) Other lients-ice cream (grams litre) Dairy ingredients-specialties (% of volume) Other ingredientsspecialties (grams per litre) 72% 48 93% 73 5 197-085 Compagnie du Froid, S.A. Exhibit 2 French Region, 2009 Results Variance Profit Plan Volume Euros ('(x)) ('000) Actual Volume Euros ('(x2) (1000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Revenue from distribution Total Sales 4.010 445 17,879 3,661 4.618 405 20.005 3,377 79 23,461 2,126 (284) 79 1,921 F U F F 4,455 21,540 5,023 Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2,887 1,844 38.29 7,893 2,841 371 3.317 2,047 43.56 9,142 3,186 438 (1,249) (345) (67) CCC Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 410 316 40 03 1,121 693 388 8,233 368 298 36.02 1,015 655 362 8,663 106 38 26 430 F F F F (118) U Other Costs Supervision, energy, maintenance, ... Depreciation Operating margin 2,206 467 5,560 2,324 467 5,872 312 F Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Alloca Allocated central office expenses Profits before Interest and Taxes 861 507 1,078 1,141 788 158 1,027 908 510 1,139 1,070 810 193 1.242 (47) (3) (61) 71 (22) (35) 215 TCCTCCC Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 2,322) Total identifiable assets 94 580 4,713 5,387 141 634 4,726 5,501 (47) (54) (13) (114) 11 Conditions for tourism Average summer temperature 29.8 C 29.2C 6 Compagnie du Froid, S.A. 197-085 Exhibit 3 Italian Region, 2009 Results Variance Profit Plan Volume Euros ('000) (000) Actual Volume Euros ('000) (000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Total Sales 2,453 272 2,725 10,967 2,232 13,199 2.480 276 2,756 11.106 2.253 13,359 139 21 160 F F F Cost of Goods Sold Cost ice-cream Dairy ingredients (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 1,932 328 (23) (47) (28) U U U Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 259 196 24.24 689 425 220 4,717 257 197 23.29 676 430 212 4,795 13 (5) 8 78 F U F F 7 F Other Costs Supervision, energy, maintenance, Depreciation Operating margin 1,142 109 1,135 109 3,466 3,551 85 F 14 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 329 198 314 1,328 558 122 158 459 315 198 344 1,288 574 122 193 517 (30) 40 (16) F U U F U (35) 58 U F * Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 3,200) Total identifiable assets 94 377 2,763 3,234 108 357 2,764 3,229 (14) 20 (1) 5 11 " Conditions for tourism Average summer temperature 29.7C 29.8C 7 197-085 Compagnie du Froid, S.A. Exhibit 4 Spanish Region, 2009 Results Variance Profit Plan Volume Euros (000) ('000) Actual Volume Euros ('000) ('000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Total Sales 3,685 409 4,094 16,294 3,330 19,624 3,575 400 3,975 15,507 3.251 18,758 (787) (79) (866) CCC Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2.653 1.769 34.37 6,923 2,670 279 2,175 1,450 29.21 5.607 2.202 238 1,316 468 41 TI TI TI Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 381 299 37.09 994 633 301 7,824 362 275 34.73 933 571 283 8,924 61 62 18 1,100 F F F F (21) Other Costs Supervision, energy, maintenance, ... Depreciation Transfer from France Operating margin 2.145 391 2.166 391 2.126 4,241 (2.126) (1,047) U U 5,288 736 413 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Subcontracted transportation Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 758 424 77 786 1.408 644 100 193 (149) (22) (11) (77) 41 (2) (24) 827 1,406 620 100 158 1.028 ccc (35) (1.177 Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation C1,669) Total identifiable assets 94 423 4,764 5.281 98 266 4.837 5,201 (4) 156 (73) 80 Conditions for tourism Average summer temperature 30.2C 28.5C 8 Compagnie du Froid, S.A. 197-085 Exhibit 5 2009 Ice cream Transfers between France and Spain Ice-cream Cost of ingredients Cost per litre Total (in '000 Euros) 603 Volume transferred (in '000 litres) Actual Costs in Euros) Dairy Ingredients Other Ingredients Labor 2.76 1.56 0.09 1.98 0.69 0.09 1,194 416 57 Allocated Fixed Costs (in Euros) Other costs Depreciation S&A expenses 0.46 0.09 0.04 279 56 23 5% profit margin 0.17 101 Total transfer price 3.53 2,126 9 197-085 197-0185 Compagnie du Froid, S.A. Exhibit 6 Historical Data- Temperature and Sales Volume Volume Growth 1998 France Year Temperature Sales Volume (degrees Celsius) ('000 litres) 1995 27.7 1,344 1996 29.2 1,435 1997 28.4 1,484 30.9 1,714 1714 1999 320 32.9 700 2,031 2000 2000 272 27.3 100 1,984 2001 200 30.0 2200 2000 2,208 205 30.5 2002 2002 2,489 2003 30.8 2004 2,761 200 2004 30.0 2,998 2005 2005 29.7 3,216 2006 30.3 3.445 2007 29.6 3,797 2008 29.4 4,087 2009 (budget) 4.455 Average 29.8 C 6.7% 3.4% 15.5% 18.5% -2.3% 19 20 11.3% 4270 12.7% 4000 10.9% eaz 8.6% 7 201 7.3% 740 7.1% 10.2% 7,6% 9.0% 9.1% Volume Growth Spain Year Temperature Sales Voluine (degrees Celsius) ('000 litres) 1995 30.8 1,069 1996 31.2 1,272 1997 29.0 1,402 245 1998 31.6 1,685 1000 1999 20 DES 29.8 1,852 2000 2000 20 28.3 2006 2004 2,006 2001 280 28.0 1,964 2002 27.5 275 2022 2,033 200 2003 29.9 2224 2,231 2004 2204 30.4 2,481 2005 240 31.8 2891 2,684 2006 2006 32.4 2026 3,036 30.4 3,346 2008 31.0 3,722 2009 (budget) 4,094 Average 30.2 C 18.9% 10.2% 20.2% 9.9% 8.3% 2402 -2.1% FOZ 3.5% 9.8% BOL 14202 11.2% 202 8.2% 12.40 13.1% 10.2% 11.3% 10.0% 10.2% 2007 10 Compagnie du Froid, S.A. 197-065 197-085 Exhibit 6 Historical Data - Temperature and Sales Volume (Continued) Volume Growth Year Temperature (degrees Celsius) 1999 32.2 2000 30.4 2001 2009 20.0 28.6 2002 31.8 2003 20.1 28.1 2004 28.2 2005 29.0 2006 28.3 2007 30.1 2008 30.0 2009 (budget) Average 29.7 C Italy Sales Volume ('000 litres) 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% 0.70 8.0% 5.7% 11.7% 16.4% 12.0% 12.0% Exhibit 7 Compagnie du Froid S.A. Mission Statement Compagnie du Froid, S.A. exists to offer customers the best in iced summer refreshments. We work as a team to produce and market only premium quality products that are known for innovation, quality, and value. In everything we do, we strive to delight our customers and offer an experience that reflects summer fun and relaxation. 11 Compagnie du Troid, S.A. 197-085 Exhibit 1 Examples of Standards for the 2009 Profit Plan (Spanish Region) Standards Percentage of volume from specialties Spain 10% Selling prices (in Euros) Ice-cream (per litre) Specialties (per litre) 4.42 8.13 Manufacturing costs (in Euros) Dairy ice-cream (per litre) Other ingredients ice-cream (sugar, flavor, etc. per 100 grams) Other ingredients specialties (sugar, flavor, etc. per 100 grams) Labor (wage per hour) Labor hours ice-cream (litres per hour) Labor hours specialties (litres per hour) 2.61 1,51 2.12 8.13 107.20 11.04 Volume Dairy ingredients-ice-cream (% of volume) Other lients-ice cream (grams litre) Dairy ingredients-specialties (% of volume) Other ingredientsspecialties (grams per litre) 72% 48 93% 73 5 197-085 Compagnie du Froid, S.A. Exhibit 2 French Region, 2009 Results Variance Profit Plan Volume Euros ('(x)) ('000) Actual Volume Euros ('(x2) (1000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Revenue from distribution Total Sales 4.010 445 17,879 3,661 4.618 405 20.005 3,377 79 23,461 2,126 (284) 79 1,921 F U F F 4,455 21,540 5,023 Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2,887 1,844 38.29 7,893 2,841 371 3.317 2,047 43.56 9,142 3,186 438 (1,249) (345) (67) CCC Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 410 316 40 03 1,121 693 388 8,233 368 298 36.02 1,015 655 362 8,663 106 38 26 430 F F F F (118) U Other Costs Supervision, energy, maintenance, ... Depreciation Operating margin 2,206 467 5,560 2,324 467 5,872 312 F Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Alloca Allocated central office expenses Profits before Interest and Taxes 861 507 1,078 1,141 788 158 1,027 908 510 1,139 1,070 810 193 1.242 (47) (3) (61) 71 (22) (35) 215 TCCTCCC Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 2,322) Total identifiable assets 94 580 4,713 5,387 141 634 4,726 5,501 (47) (54) (13) (114) 11 Conditions for tourism Average summer temperature 29.8 C 29.2C 6 Compagnie du Froid, S.A. 197-085 Exhibit 3 Italian Region, 2009 Results Variance Profit Plan Volume Euros ('000) (000) Actual Volume Euros ('000) (000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Total Sales 2,453 272 2,725 10,967 2,232 13,199 2.480 276 2,756 11.106 2.253 13,359 139 21 160 F F F Cost of Goods Sold Cost ice-cream Dairy ingredients (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 1,932 328 (23) (47) (28) U U U Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 259 196 24.24 689 425 220 4,717 257 197 23.29 676 430 212 4,795 13 (5) 8 78 F U F F 7 F Other Costs Supervision, energy, maintenance, Depreciation Operating margin 1,142 109 1,135 109 3,466 3,551 85 F 14 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 329 198 314 1,328 558 122 158 459 315 198 344 1,288 574 122 193 517 (30) 40 (16) F U U F U (35) 58 U F * Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation 3,200) Total identifiable assets 94 377 2,763 3,234 108 357 2,764 3,229 (14) 20 (1) 5 11 " Conditions for tourism Average summer temperature 29.7C 29.8C 7 197-085 Compagnie du Froid, S.A. Exhibit 4 Spanish Region, 2009 Results Variance Profit Plan Volume Euros (000) ('000) Actual Volume Euros ('000) ('000) Sales Data Sales ice-cream (volume in litres) Sales specialties (litres) Total Sales 3,685 409 4,094 16,294 3,330 19,624 3,575 400 3,975 15,507 3.251 18,758 (787) (79) (866) CCC Cost of Goods Sold Cost ice-cream Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) 2.653 1.769 34.37 6,923 2,670 279 2,175 1,450 29.21 5.607 2.202 238 1,316 468 41 TI TI TI Cost specialties Dairy ingredients (litres) Other ingredients (100 gr.) Labor (hours) Contribution margin 381 299 37.09 994 633 301 7,824 362 275 34.73 933 571 283 8,924 61 62 18 1,100 F F F F (21) Other Costs Supervision, energy, maintenance, ... Depreciation Transfer from France Operating margin 2.145 391 2.166 391 2.126 4,241 (2.126) (1,047) U U 5,288 736 413 Selling and Administrative Expenses Delivery expenses Depreciation of trucks Subcontracted transportation Selling expenses Advertising Administrative salaries and expenses Rent Allocated central office expenses Profits before Interest and Taxes 758 424 77 786 1.408 644 100 193 (149) (22) (11) (77) 41 (2) (24) 827 1,406 620 100 158 1.028 ccc (35) (1.177 Identifiable Assets Cash (average) Accounts Receivable (average) Plant and equipment (net of depreciation C1,669) Total identifiable assets 94 423 4,764 5.281 98 266 4.837 5,201 (4) 156 (73) 80 Conditions for tourism Average summer temperature 30.2C 28.5C 8 Compagnie du Froid, S.A. 197-085 Exhibit 5 2009 Ice cream Transfers between France and Spain Ice-cream Cost of ingredients Cost per litre Total (in '000 Euros) 603 Volume transferred (in '000 litres) Actual Costs in Euros) Dairy Ingredients Other Ingredients Labor 2.76 1.56 0.09 1.98 0.69 0.09 1,194 416 57 Allocated Fixed Costs (in Euros) Other costs Depreciation S&A expenses 0.46 0.09 0.04 279 56 23 5% profit margin 0.17 101 Total transfer price 3.53 2,126 9 197-085 197-0185 Compagnie du Froid, S.A. Exhibit 6 Historical Data- Temperature and Sales Volume Volume Growth 1998 France Year Temperature Sales Volume (degrees Celsius) ('000 litres) 1995 27.7 1,344 1996 29.2 1,435 1997 28.4 1,484 30.9 1,714 1714 1999 320 32.9 700 2,031 2000 2000 272 27.3 100 1,984 2001 200 30.0 2200 2000 2,208 205 30.5 2002 2002 2,489 2003 30.8 2004 2,761 200 2004 30.0 2,998 2005 2005 29.7 3,216 2006 30.3 3.445 2007 29.6 3,797 2008 29.4 4,087 2009 (budget) 4.455 Average 29.8 C 6.7% 3.4% 15.5% 18.5% -2.3% 19 20 11.3% 4270 12.7% 4000 10.9% eaz 8.6% 7 201 7.3% 740 7.1% 10.2% 7,6% 9.0% 9.1% Volume Growth Spain Year Temperature Sales Voluine (degrees Celsius) ('000 litres) 1995 30.8 1,069 1996 31.2 1,272 1997 29.0 1,402 245 1998 31.6 1,685 1000 1999 20 DES 29.8 1,852 2000 2000 20 28.3 2006 2004 2,006 2001 280 28.0 1,964 2002 27.5 275 2022 2,033 200 2003 29.9 2224 2,231 2004 2204 30.4 2,481 2005 240 31.8 2891 2,684 2006 2006 32.4 2026 3,036 30.4 3,346 2008 31.0 3,722 2009 (budget) 4,094 Average 30.2 C 18.9% 10.2% 20.2% 9.9% 8.3% 2402 -2.1% FOZ 3.5% 9.8% BOL 14202 11.2% 202 8.2% 12.40 13.1% 10.2% 11.3% 10.0% 10.2% 2007 10 Compagnie du Froid, S.A. 197-065 197-085 Exhibit 6 Historical Data - Temperature and Sales Volume (Continued) Volume Growth Year Temperature (degrees Celsius) 1999 32.2 2000 30.4 2001 2009 20.0 28.6 2002 31.8 2003 20.1 28.1 2004 28.2 2005 29.0 2006 28.3 2007 30.1 2008 30.0 2009 (budget) Average 29.7 C Italy Sales Volume ('000 litres) 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% 0.70 8.0% 5.7% 11.7% 16.4% 12.0% 12.0% Exhibit 7 Compagnie du Froid S.A. Mission Statement Compagnie du Froid, S.A. exists to offer customers the best in iced summer refreshments. We work as a team to produce and market only premium quality products that are known for innovation, quality, and value. In everything we do, we strive to delight our customers and offer an experience that reflects summer fun and relaxation. 11
