1. With the release of the new budget for year 9 from Competition Bikes, there are a couple of areas that are a concern that warrant being addressed. The first being the prediction of amount of bikes to be sold; Competition Bikes is expecting 3,510 units to be sold after a year 8 that sold only 3,400 units which was a 15% drop in sales from the year prior (which sold approximately 4,000 units) with zero drop in price point which may make it harder for customers to justify purchasing a bike in the current economy. Understandably, year 8 was in the middle of a recession and the economy could rebound for a productive year 9. However, with only an extra $984 being spent on advertisement, the expectations could fall short unless …show more content…
The company had a budget of $5,247,250, with the flexible budget being $5,117,385, however the final numbers were $5,096,847, which gives the company an unfavorable variance of -$130,065. Total Variable Cost however was a favorable expense. With a planned budget of $3,967,962 and a flexible budget of $3,869,612 the actual output was $3,805,400 the favorable variance came out to $98,349. Contribution margin was also an unfavorable variance (-$31,716). Advertising Expenses went over cost for an unfavorable variance of $3,754 from a standard budget of $28,412 and a flexible budget of $27,708. The extra money spent towards advertising may have been to help boost extra sales towards the end of the year. Transportation Out also went over its budget for an unfavorable variance by $5,607. However, there is more to the Transportation Out than what the budget says. The price of shipment is supposed to be $30 per unit and with 87 less units sold; there should be an extra $2,610 in the budget. This requires extra investigation.
2A. In terms of corrective action, the best course is to focus on where the points where there were unfavorable variances. A key point to that would be to also create realistic predictions of sales and budget. By predicting a high sales goal (one that exceeds the amount of units sold the year prior), Competition Bikes is potentially setting itself up for another down year. To prevent another unfavorable variance in Net
Running Head: EBT TASK 2 1 Research Integration EBT Task 2 Western Governor’s University EBT TASK 2 2 Review and Classification of Evidence Source Type Appropriate Type of (American Academy of Pediatrics; American Academy of Family Physicians, 2004) or inappropriate Filtered Appropriate: This article establishes diagnosis and
The purpose of the report is to assist Aircraft Solutions (AS) in indentifying the most significant Information Technology (IT) security vulnerabilities. AS products and services are at the forefront of the industry and the protection of such is very important as they are an industry leader. The vulnerabilities that will be discussed are the firewall configuration, virtualization of their
The main reason behind it is that the variance analysis of materials, labor, and overhead indicates the difference between original budget and actual sales/amount. It explains that the management should make changes in the budgets in order to diminish the chances of failure (Epstein & Jermakowicz, 2010). Moreover, the company should make changes in its all budgets like production budget, sales budget, manufacturing budget, selling budget and general & administrative. These changes would be helpful to reduce the difference between the actual and projected sales of the firm.
Florence Nightingale, considered the founder of modern nursing, first began to establish nursing as a profession during the Crimean War. Since then, nursing theorists have continued to expand on the thought that patients are made up of more than just the symptoms they present with, Abraham Maslow, Carl Jung, Dr. Larry Dossey and Dorothy Johnson, but none more so than Jean Watson. She developed a theory of human caring that contained several core concepts, these concepts lay forth the ground work for how we, as nurses, should care for a patient. These concepts included transpersonal caring relationships (going beyond ego to higher “spiritual” caring
Nestled in Southern Indiana just west of Louisville, Kentucky and south of Indianapolis, Indiana is Dubois County, Indiana. Dubois County is comprised of the towns of Birdseye, Ferdinand, Holland, Huntingburg and Jasper. Of those towns, Jasper is the largest and is the county seat (Kelly School of Business, 2014). Over fifty-two percent of the population consists of adults ranging from 25-64 years of age (Kelly School of Business, 2014). The leading cause of mortality in this county is heart disease, cancer, suicide and injuries (Memorial Hospital and Health Care Center & Dubois County Health Department, 2011).
In September of 2012, beginning in the country of Saudi Arabia, hospitals began seeing increased cases of a respiratory virus never before seen in humans. They named it Middle East Respiratory Syndrome, or MERS. MERS is a viral respiratory illness caused by the coronavirus. It was originally thought to have started there in Saudi Arabia. It was not until later that they were able to trace the origin back to Jordan starting in April of 2012. All outbreaks of MERS have been traced back to originating from the Arabian Peninsula (CDC, 2015a). Unfortunately, it is not known exactly how MERS was contracted in humans, but it is believed to have come from an animal source, probably from camels. Strains of MERS
American Academy of Pediatrics and American Academy of Family Physicians article regarding acute otitis media is a filtered resource. It is an appropriate source for nursing practice because; it establishes clinical guidelines to diagnose and manage AOM. It also establishes guidelines when to treat the signs and symptoms of AOM, watchful waiting, or to treat with an antibiotic. This article is classified as an evidence based guideline because, it reviews multiple research literatures in a systemic manner and provides
Embrace new technologies to improve efficiency, maintain environmental stewardship through green practices and sustainable operations, support continuous improvement of the business processes, develop employees’ capability, and provide excellent customer services.” (Hillsborough County, 2015)
These are often for local newspaper ads. The downside to the supplier is that their competitor may also offer an advertising allowance and receive a more desirable location within the ad. This is something that would have to be clearly negotiated.
From a young age, I've had the dream of moving to and immersing myself in the culture of a foreign country. Being able to live and teach in Japan would allow me to fulfill this dream while also being in alignment with the goals of the JET Program. I have the long-term career goal of becoming a literary and media translator of Japanese, and think the program offers a unique opportunity to not only meet and communicate with native Japanese speakers, but also to have a firsthand experience with the culture of Japan. I believe being able to exchange ideas and languages with people from a different background will be both personally and professionally enriching, as well as facilitate goodwill and a sharing of cultures between countries.
Another concern identified, is the utilities expense budget for utilities in Year 9 which is $150,000. This amount is identified as a fixed amount and is unrelated to actually production activities and manufacturing efficiency. Considering that production levels and activity fluctuates throughout the year, the budget for utilities should be a variable item. An example; from Year 7 to Year 8, the utilities expenses increase by $15,000 and with this detection, ways to reduce this expense should be investigate. Another concern is a duplicated line item under the Selling, General, and Administrative Budget for Utilities and Utilities and Services. Another issue for concern, Total Variable Cost was reported to be lower; however was not enough for the lack of sales combined with an increase in advertising and transportation which resulted in an overall negative result. The low Net Sales directly impacted the Contribution Margin which decreased by $49,397. Overall, these concerns indicate the need for a flexible budget with variance analysis.
A1. Budget Concerns Competition Bikes budget has several areas of concern that need to be address. 1. Units expected to be sold for year nine is 3510. Competition Bikes is predicting that they will sell 3510 Bikes but they only sold 3400 Bikes in year eight down 15% from year seven 4000 units sold. Competitions Bikes has budget to high because the current economic down turn is showing no signs of relief for the next three years. Many of Competition Bikes customers are sponsored riders and many sponsors have pulled their funding to their rides. Competition Bikes has not presents a plan that would support their projections. Competition Bikes should lower there should lower the expected units sold so not to over order raw materials that will
I performed a SWOT analysis on the current AEnergy technology infrastructure. A SWOT analysis is a technique and opportunity for a thoughtful overview of where things are good and where things need improvement. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. I’ve reviewed our system for all four of the SWOT attributes to give the following summary and suggestions.
Snowboards had a cash and cash equivalent of 83.8% during year 12 and year 13, but that
This was favorable, but the Efficiency Variable was 100,000 unfavorable. This suggest that Competition Bike received a great price, but with the unfavorable Efficiency there were a lot of left over materials suggesting the material might not be the best quality. Direct Labor had a 150,000 Unfavorable Variance, but had a 50,000 favorable Efficiency Variance. The labor cost was up due to the high skill level needed for the bike manufacturing. The 50,000 favorable Efficiency Variance enabled the high skill labor to perform the task very efficiently. The Manufacturing Overhead had a 24,000 unfavorable Price Variance, and a 2426 unfavorable Efficiency Variance. The Advertising Cost had a 5,000 unfavorable Price Variance and a 1246 favorable Efficiency Variance. This suggest that Competition Bike spent more on Advertising in order to boost lagging sales, and the favorable Efficiency Variance shows that even though more was spent than budgeted, the money spent was efficient and worth the increase. The Transportation Out had a 3207 unfavorable Price Variance and a 2400 unfavorable Efficiency Variance. This suggest that Transportation cost were up due to increased fuel cost, and this increase in cost resulted in unfavorable Efficiency Variance due to transporting fewer bikes with increase in fuel cost.