would the difference in average standard price and actual price of EM be created through discounts here? because EI is selling for higher actual price than standard price, I don't see how this would be achieved.

Jennifer, flushed with all the fervour and enthusiasm of a total convert to professional management, got down to work immediately. She collected all the data in Exhibit_302.2 and then wondered somewhat disconsolatelv what her next sten should he Instrumental's products can be grouped into two main lines of business: electric motors (EM) and electronic instruments (EI). Both EM and EI are industrial measuring instruments and perform almost identical functions. However, EM is based on mechanical and electrical technology, whereas EI is based on the microchip. Instrumental Ltd uses a variable costing system for internal reporting purposes. QUESTION You are required to put yourself in Jennifer's position and state what you would do in your analysis of Instrumental's performance across its different departments and what you would recommend to the president. Instrumental Ltd Vijay Govindarajan and John Shank This case requires the analysis of budgeted versus actual performance for dieerent organizational functions and considers strategic versus operational issues. David Jones, president and principal shareholder of Instrumental Ltd, sat at his desk reflecting on the 2018 results (Exhibit_302.1). For the second year in succession the company had exceeded its profit target. David was obviously happy with the year's results. All the same, he wanted to get a better feel for the relative contributions of the R&D, manufacturing and marketing departments in this overall success. With this in mind, he called his assistant, Jennifer, a recent MBA graduate of the London Business School, into his office. 'Jennifer,' he started, 'as you can see from our recent financial results, we have exceeded our profit target by 622000. Could you please prepare an analysis showing how much R&D, manufacturing and marketing contributed to this?' Jennifer, flushed with all the fervour and enthusiasm of a total convert to professional management, got down to work immediately. She collected all the data in Exhibit_302.2 and then wondered somewhat disconsolatelv what her next sten should he Instrumental's products can be grouped into two main lines of business: electric motors (EM) and electronic instruments (EI). Both EM and EI are industrial measuring instruments and perform almost identical functions. However, EM is based on mechanical and electrical technology, whereas EI is based on the microchip. Instrumental Ltd uses a variable costing system for internal reporting purposes. QUESTION You are required to put yourself in Jennifer's position and state what you would do in your analysis of Instrumental's performance across its different departments and what you would recommend to the president. Instrumental Ltd Vijay Govindarajan and John Shank This case requires the analysis of budgeted versus actual performance for dieerent organizational functions and considers strategic versus operational issues. David Jones, president and principal shareholder of Instrumental Ltd, sat at his desk reflecting on the 2018 results (Exhibit_302.1). For the second year in succession the company had exceeded its profit target. David was obviously happy with the year's results. All the same, he wanted to get a better feel for the relative contributions of the R&D, manufacturing and marketing departments in this overall success. With this in mind, he called his assistant, Jennifer, a recent MBA graduate of the London Business School, into his office. 'Jennifer,' he started, 'as you can see from our recent financial results, we have exceeded our profit target by 622000. Could you please prepare an analysis showing how much R&D, manufacturing and marketing contributed to this