You are given the following information for the Face-Care Products

Division of Cygnet Inc.:

Cygnet Inc.

Face-Care Products

Budgetary Control Report of January ($ millons)

Details

Budget

Total face-care product market

$10.000

Market share

5%

Sales revenue

$500

Variable costs

Raw materials

Direct labour

Overhead

Marketing

$ 80

150

50

20

$300

Fixed costs

Production

Marketing & administration

Total costs

$ 50

10

Operating income

60

$360

$140

Actual

$12.500

4%

$ 95

150

45

$350

Required

(a) Is the Face-Care Products Division in control or out of control?

(b) In any areas where the division has deviated from the original plan.

mont) tot no.p identify which managers should be held responsible.

How much operating income do you think the Facc-Care Products

Division should have made in January?