Review the following workplace budget for Handsome Health. Compare the actual performance to date with the target figures. Identify any variances of the budget figures, and draft a report to your manager discussing the team's performance.

In your report:

• Outline how performance is monitored and measured as an approach to reviewing current KPIS and developing new key performance indicators to meet business objectives.
• Explain the factors that affected actual performance including regulatory compliance issues and requirements
• Justify the results achieved

The variance has a negative business impact. Discuss the variations and how you can improve the results to achieve budget and adherence to the organisation's goals and objectives.

The following is the variance statement for Handsome Health Fitness and Nutrition after three months of business in their new centre.

Handsome Health Variance report for December quarter
	Budget $	Actual $	Variance $	%
Sales Revenue	500,000	400,000	100,000	20
Less Cost of Goods Sold
Stock as at 1 Oct
Add purchases	150,000	150,000	0	0
Sub total	150,000	150,000	0	0
Less stock as at 30 Dec	25,000	50,000	(25,000)	(100)
Cost of Goods Sold	125,000	100,000	25,000	20
Gross Profit	375,000	300,000	75,000	28
Less Operating Expenses
Advertising	25,000	15,000	10,000	40
Accounting fees	250	250	0	0
Bank fees	250	250	0	0
Postage	750	1000	(250)	(33)
Power	11,250	12,000	(750)	(7)
Insurance	3,750	3,750	0	0
Motor vehicle	10,000	4,000	6,000	60
Lease	62,500	62,500	0	0
Salary Costs
Wages	125,000	125,000	0	0
Superannuation	11,250	11,250	0	0
Total Expenses	250,000	235,000	15,000	6
Operating Profit*	125,000	65,000	60,000	48