requirement 6

Chro Kenavon Understanding Flexible Budgets You have been a loyal employee of NRG Corporation for 16 years. In December of 2018, you were excited to be promoted to Profit Center Manager, where you gained the responsible for the profits and losses of NRG's line of energy drink products. The product line's master budget was created and approved prior to your start date as the manager, but with the entire fiscal year 2019 still ahead, you had the chance to prove your worth and value as a manager two months into your new role, a few other segments were discontinued by NRG Corporation for poor performance and operating losses. As a result, your product line not only had to assume some of the plant-wide costs that were previously Allocated to the discontinued products, but you felt pressure to perform well so that the energy drink line, and possibly your job, would not be dropped too. As such, you spent much time on the job focusing on understanding and reducing costs, where possible. Starting with the Sales Team, you encouraged the salesforce to find the balance between selling more volume but offering less discounts, as it had become rather commonplace to offer discounts at the start of a sales pitch as opposed to only when needed to close the deal. You worked with the Sales Manager to discuss sales strategies and broadening the search for potential new customers. After working with the Sales Team, you met with the Production Manager to discuss cost-cutting and efficiency measures on the production floor. These efforts included meeting with suppliers to get a better deal on raw materials and purchasing better, more productive manufacturing equipment. You were already locked in for rent for the facility, but you worked with Corporate Procurement to shop around on insurance for factory assets and encouraged simple cost-cutting measures such as turning off lights at night and using security cameras to reduce theft of raw materials. You also dedicated some of your time to ensuring your assembly line workers were not only qualified to do the work, but were efficient and effective with their time and resources. You Implemented some small incentive to try to reduce attrition of your skilled workers. After a year on the job, your boss, Jennifer Riley, scheduled a meeting to discuss your first year's performance. To your surprise, she indicated that she was not very pleased with the results of the NRG energy drink line. This was largely because the operating income was less than expected; she provided the following performance report for your review and scheduled a meeting to further discuss the results of the energy drink line and your performance as a manager. NRG Corporation Energy Drink Performance Report For the Year Ended December 31, 2019 Actual Data Master Budget Variance (5) wo months into your new role, a few other segments were discontinued by NRG Corporation for poor performance and rating losses. As a result, your product line not only had to assume some of the plant-wide costs that were previously e to the discontinued products, but you felt pressure to perform well so that the enery drink line, and porn pour job would not be dropped too. uch you spent much time on the job focusing on understanding and reducing costs, where possible. Starting with the Team, you encouraged the salesforce to find the balance between selling more volume but offering less discounts, had become other commonplace to offer discounts at the start of a sales pitch as opposed to only when needed to dose You worked with the Sales Manager to discuss sales strategies and broadening the search for potential new After working with the sales team, you met with the Production Manager to discuss cost cutting and efficiency measures on the production floor. These efforts included meeting with suppliers to get a better deal on raw materials and purchasing better, more productive manufacturing equipment. You were already locked in for rent for the facility, but you worked with Corporate Procurement to shop around on Insurance for factory assets and encouraged simple cost-cutting measures such as turning off lights at night and using security cameras to reduce theft of raw materials. You also dedicated some of your time to ensuring your assembly line workers were not only qualified to do the work, but were efficient and effective with their time and resources. You Implemented some small incentive to try to reduce attrition of your skilled After a year on the job, your boss, Jennifer Riley, scheduled a meeting to discuss your first year's performance. To your surprise, she indicated that she was not very pleased with the results of the NRG enery drink line. This was largely because the operating income was less than expected, she provided the following performance report for your review and scheduled a meeting to further discuss the results of the energy drink line and your performance as a manager. NRG Corporation Energy Drink Performance Report For the Year Ended December 31, 2019 Actual Data Master Budget Variance (5) SE/U 180,000 S 11.520.000 $ 175,000 11,375,000 5,000 145,000 $ F $ $ $ 6,210,000 1,746,000 810,000 2,754,000 6,125,000 1,750,000 875,000 2,625,000 85,000 U COo8F 65.000 129.000 Sales Volume (number of cases) Revenue (standard: $65 per case) Variable expenses: Direct Materials (standard: $35 per case) Direct Labor (standard: $10 per case) Variable Overhead (standard: $5 per case) Contribution Margin Direct Feed Expenses: Direct Fixed Overhead Direct Operating Expenses Segment Margin Common Fixed Expenses: Allocated Factory Expenses Operating Income (Loss) **Favorable Varlance 17/Unfavorable Variance (U) 535,000 120,000 2,099,000 540,000 110,000 1.975,000 5000 10.000 124.000 1,750,000 349,000 1,500,000 475,000 250 $ $ November Requirements: 1. Looking at the performance report is all the data included within your control or under your area of responsibility? Voronce Can't te neosed 2 Upon reviewing the budget results, what is your reaction to the news that your boss is unhappy with your results? Consider your answer to question 1 in your response. 3. Prepare a report that reflects an accurate depiction of your performance, accounting for changes in volume. En full hd 4. Explain your revised performance report. Is it a better depiction of your performance? What does each of the variance categories represent? 5. Review the individual variances for sales and expenses in your revised performance report. Which of the efforts that yo made throughout the year may produced favorable results? Which efforts do not seem to have worked out? Support you answers. What additional research could be done to further uncover the reasons behind the variances to better support hypotheses? 6. Write a memo to Ms. Riley to explain your interpretation of your performance, highlighting the positive aspects and including a high-level action plan for further improvement of the product linel pert vol fulflex G Actuell Moster $17.00 $11375