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I-22.01 Problem - In performing the evaluation assume that...

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I-22.01 $ 750 000 $ 775 000 Top Brass Corporation sells decorative vases out of its three stores located around the world. Below is "per store" sales and cost data (all reported in dollars) for March. Form a three-person team. Each team member should assume the role of store manager for one of the following three locations, and prepare a "budget v. actual" performance report for that location. Next, combine the individual actual performance reports, assuming that additional common fixed costs are $300,000. Evaluate the actual results of operations, and assess whether closing any location would have improved overall results.
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Unformatted text preview: In performing the evaluation, assume that traceable fixed costs could be eliminated for any closed location. However, the common fixed costs cannot be avoided. Discuss the importance of accurate budgeting as it relates to planning and performance evaluation. Budget Actual Houston Sales , , Variable expenses 47% 53% Traceable fixed costs $ 300,000 $ 380,000 Dubai Sales $ 1,200,000 $ 1,350,000 Variable expenses 42% 43% Traceable fixed costs $ 575,000 $ 585,000 Beijing Sales $ 690,000 $ 660,000 Variable expenses 48% 45% Traceable fixed costs $ 240,000 $ 245,000...
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