Requirement 2 answer choices: Raw material costs for new products may have been ------ (Higher or Lower ) than budgeted. Customer satisfaction with new products may have been ---- (high or low) ----(resulting in unanticipated cost of replacement products given to dissatisfied customers OR therefore, there was no need to replace products or offer refunds) ----- (External controllable OR external uncontrollable OR internal controllable OR Internal uncontrollable) factors such as increases in operating costs, adverse weather, or changes in the overall economy may have ------ (increased or decreased) efficiency

Suppose that for next year a particular Seaside Caf store budgeted revenue of $374,000, a 10% increase over the current revenue of $340,000. Seaside Caf prepared a plan that included six new budgeted products and a total advertising budget of S34,000. Actual results were as follows: Requirements 1. Prepare a performance report for revenues and advertising costs 2. Suppose the remaining cost elements of net income were not available until several months after the store implemented the plan. New products added Advertising Revenues The net income results were disappointing to management profits declined even though revenues increased because costs increased by more than revenues. List some factors that might have caused costs to increase so much and that management may not have considered when it formulated the store's plan. 37,400 $369,000 Requirement 1. Prepare a performance report for revenues and advertising costs. (Label each variance as favorable (F) or unfavorable (U).) Budget Actual Variance Revenues Advertising cost Net Requirement 2. Suppose the remaining cost elements of net income were not available until several months after the store implemented the plan. The net income results were disappointing to managementprofits declined even though revenues increased because costs increased by more than revenues. List some factors that might have caused costs to increase so much and that management may not have considered when it formulated the store's plan. Raw material costs for new products may have beenthan budgeted. Customer satisfaction with new products may have been Choose from any list or enter any number in the input fields and then continue to the next