Prairie Natural Body Care Co. (PNBC)

The following budgeted price and cost information is available for 2022: Body Butter Hand Cream Lip Butter Selling price $ 16.00 $ 12.00 7.50 Costs: Beeswax 2.00 1.50 0.50 Other natural seed/plant oil 1.50 1.25 0.25 Natural flavour 0.75 0.68 0.32 Labour costs 2.84 1.67 0.36 Manufacturing overhead costs (Note 1) 3.00 2.00 1.00 Selling and admin costs (Note 2) 2.46 1.80 1.20 12.55 8.90 3.63 Margin 3.45 3.10 S 3.87 Note 1: Manufacturing overhead is allocated at $8.00/machine hour. 40% of the manufacturing overhead costs are considered variable. Note 2: 10% of the selling and admin costs are variable. The remaining is fixed. Monthly demand information is as follows: Body Butter Hand Cream Lip Butter Max Demand 5,000 2,000 1,500 Min Demand 3,000 The monthly machine hour capacity is limited to 1,800 hours.Your accounting manager would like you to assist with the preparation of the sales variance analysis for the 3'd quarter of 2022. Budgeted and actual sales information for the company's third quarter of 2022 is as follows: Actual Sales Volume Budget Sales Volume Body Butter 9,600 9,300 Hand Cream 3,600 5,100 Lip Butter 4,200 4,500 Total 17,400 18,900 Market size 180,000 160,000Sales Volume Variance Body Butter Hand Cream Lip Butter Total Sales Volume Variance Sales Mix Variance Body Butter Hand Cream Lip Butter Total Sales mix Variance Body Butter Hand Cream Lip Butter Total Sales Mix Variance Actual Quantity sold 9,600.00 3,600.00 4,200.00 Actual Quantity sold 9,600.00 3,600.00 4,200.00 12,400.00 Actual Unit-is of produos all sold 12,400.00 12,400.00 12,400.00 Budgeted :2] us ntity.r sold 9,300.00 5,100.00 4,500.00 Actual sales Mix 55.17% 20.69% 24.14% Actual Sales mix % 55.12% 20.69% 24.14% Budgeted CM/U nit 5 2.46 5 5.92 5 5.55 Budgeted quantity Budgeted sold Sales Mix 9,300.00 49.21% 5,100.00 26.98% 4,500.00 23.81% 18,900.00 Budgeted sales mix %Budgeted CM 49.21% 5 26.98% 5 23.81% 5 2.46 5.92 - 5.55 2,239.20 8,880.00 1,665.00 8,305.80 U ?,?48.34 6,483.81 31?.14 1,581.68 F Sales Quantity Variance Actual Unitis of producs all Sales mix Variance sold Budgeted units of allsold Budgeted sales mix % Budgeted CM Body Butter 17,400.00 18,900.00 49.21% $ 7.46 - 5,509.14 Hand Cream 17,400.00 18,900.00 26.98% $ 5.92 - 2,396.19 Lip Butter 17,400.00 18,900.00 23.81% S 5.55 - 1,982.14 Total Sales Mix Variance 9,887.48 UMarket Share Variance Actual Budgeted World Wide 130,000.00 160,000.00 Prairie Natural Info 17,400.00 13,900.00 Market Share 9.62% 11.31% Average Contribution Margin per unit Budgeted units of all producs sold Budgeted sales mx Budgeted CMHUnit Static Budget Bacly Butter 13,900.00 49.21% 5 7.46 69,415.20 Hand Cream 13,900.00 26.93% 5 5.92 30,192.00 Lip Butter 13,900.00 23.31% 5 5.55 24,975.00 124,532.20 Market Share Variance Budgeted Market Actual Market Size in Units Actual Market Share Share Budgeted CM 130,000.00 9.62% 11.31% 6.59 - Budgeted Market Size in Budgeted Market Market Size Variance Actual Market Size in Units units Share Budgeted CM 130,000.00 160,000.00 11.31% 6.59 25,460.25 U 15,5?2.?3 F Question 4: Prepare a comprehensive variance analysis report for the CEO of PNBC to debrief her on the revenue performance for the third quarter. Ensure your recommendation is aligned with Questions 1 to 3. (15 marks) Question 5: The CEO of PNBC is wondering what other information and analysis would help improve the sales and profit performance for the body care products. Utilize your knowledge of data analytics, and provide management with at least two recommendations (internal and external) that can be considered for future analysis. (10 marks)