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Sales COGS Item Budgeted Income Actual Income Variance Statement Statement 2,848,000 2,784,000 64,000 1,998,732 2,241,213 (242,481) Gross Margin 849,268 542,787 306,481 S&A expenses 579,250
Sales COGS Item Budgeted Income Actual Income Variance Statement Statement 2,848,000 2,784,000 64,000 1,998,732 2,241,213 (242,481) Gross Margin 849,268 542,787 306,481 S&A expenses 579,250 576,750 2,500 Operating Income 270,018 (33,963) 236,055 Interest expense 9,642 16,632 (6,989) Net income 260,376 (50,595) 209,781 Question: Prepare the Flexible Budget for 2017 and find out why you have such Income variance. Recommend a way to improve the financial situation.
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The image you sent is a budgetary variance analysis which compares the budgeted income statement to the actual income statement for the year 2017 It shows the following variances Sales are 64000 lower ...
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Introduction to Management Accounting
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
16th edition
978-0133058819, 9780133059748, 133058816, 133058786, 013305974X , 978-0133058789
