Question (Please show formulas and calcuations): Prepare a report for the New York FashionsCrystal Lakes Mall store for the month of August comparing actual results to the budget.

P 614: New York Fashions

New York Fashions owns 87 womens clothing stores in shopping malls. Corporate headquarters of New York Fashions uses flexible budgets to control the operations of each of the stores. The following table presents the August flexible budget for the New York Fashions store located in the Crystal Lakes Mall:

NEW YORK FASHIONSCRYSTAL LAKES MALL STORE
Flexible Budget
August
Expense	Fixed	Variable
Cost of goods sold		45%
Management	$ 7,000	1
Salespersons	2,000	8
Rent	12,000	5
Utilities	900
Other	1,500

Variable costs are based on a percentage of revenues.

Actual results for August are summarized in the following table:

NEW YORK FASHIONSCRYSTAL LAKES MALL STORE
Actual Results from Operations
August
Revenues	$ 80,000
Cost of goods sold	38,000
Management	7,600
Salespersons	9,800
Rent	16,000
Utilities	875
Other	1,400