T P Fashion Shops T P Fashion Shops is a new chain that operates 10 stores in major malls throughout the United States Each store manager is responsible for preparing a flexible budget for the store T P headquarters accumulates and analyzes the information for each store and in the aggregate Below follows some cost estimates for the Houston store T P Fashions Flexible Budget Information Expense Fixed Variable Cost of sales $210,000 40 $740,000 Management 27,000 12 186,000 Shop assistants 162,000 8 268,000 Rent 13,200 5 54,450 Utilities 34,800 34,800 Total Cost $447,000 $1,283,250 Additional information The sales forecast for the year is $1,400,000 Variable expenses are based on revenues Do note that percentage clause for rent only kicks in above $500,000 in sales Other expenses are all specific to this store Headquarters pay for marketing and corporate overhead expenses T P wants to see a flexible budget based on the sales forecast, including estimates for sales being 10 below budget and 10 above budget Actual results T P Fashions Actual Results from Operations Revenues $1,325,000 Cost of sales 790,000 Management 208,000 Shop assistants 230,000 Rent 58,200 Utilities 31,000 Operating profit $7,800 Required Computations (use Excel) Prepare a flexible budget in good format Compute the flexible variances and indicate whether favorable or unfavorable Headquarters are contemplating charging each store a 5 marketing expense based on sales How will that affect the operating profit of the store and the money available for managerial bonuses based on actual results for the past year Summarize the information in the table I am reposting this question becuase the aid that I received before has left me a but confused as to how the person whom provided an anwer, actually obtained the answer If I cannot understand how the answer was obtained then the answer alone does not help me If someone would not mind provideding the answer and assistance as to how they met their results it would be greatlly appreciated

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T&P Fashion Shops T&P Fashion Shops is a new chain that operates 10 stores in major malls throughout the United States. Each store manager is

T&P Fashion Shops

T&P Fashion Shops is a new chain that operates 10 stores in major malls throughout the United States. Each store manager is responsible for preparing a flexible budget for the store. T&P headquarters accumulates and analyzes the information for each store and in the aggregate.

Below follows some cost estimates for the Houston store.

T&P Fashions
Flexible Budget Information

Expense	Fixed	Variable

Cost of sales	$210,000	40%	$740,000
Management	27,000	12%	186,000
Shop assistants	162,000	8%	268,000
Rent	13,200	5%	54,450
Utilities	34,800		34,800

Total Cost	$447,000		$1,283,250

Additional information

The sales forecast for the year is $1,400,000.

Variable expenses are based on revenues. Do note that percentage clause for rent only kicks in above $500,000 in sales.

Other expenses are all specific to this store. Headquarters pay for marketing and corporate overhead expenses.

T&P wants to see a flexible budget based on the sales forecast, including estimates for sales being 10% below budget and 10% above budget.

Actual results

T&P Fashions
Actual Results from Operations

Revenues	$1,325,000
Cost of sales	790,000
Management	208,000
Shop assistants	230,000
Rent	58,200
Utilities	31,000

Operating profit	$7,800

Required:

Computations (use Excel)

Prepare a flexible budget in good format.

Compute the flexible variances and indicate whether favorable or unfavorable.

Headquarters are contemplating charging each store a 5% marketing expense based on sales. How will that affect the operating profit of the store and the money available for managerial bonuses based on actual results for the past year? Summarize the information in the table.

I am reposting this question becuase the aid that I received before has left me a but confused as to how the person whom provided an anwer, actually obtained the answer.

If I cannot understand how the answer was obtained then the answer alone does not help me. If someone would not mind provideding the answer and assistance as to how they met their results it would be greatlly appreciated.