Variance Analysis

|New Look jacket inc.

| |Variance Analysis | |Issues and Recommendations | | | | | |2011/4/22 | INTRUDUCTION New Look Jacket Inc. (NLJ) had a in(predicate) socio-economic class in 2010. The net income was $170,850 high(prenominal) than bud stupefyed despite the work issue through some turmoil. A more comminuted variance psychoanalysis revealed that the problem and the increased profit was callable largely to the extraneous factor that leath er jacket food market grew more rapidly tha! n anticipated, forcing NLJ to catch up with the increasing demand. pas seul ANALYSIS piece Margin As shown in Exhibit 1, the total histrionics role allowance amount for nylon jackets was $4,350 less than the budget, although its actual whole region margin was $0.15 more than the standard due to the commence interchange and admin cost per whole. On the other hand, the total bunch margin amount for leather jackets was $325,200 more than the budget, although its actual unit contribution margin was $12.70 less than the standard due to the higher covariant costs in all categories. Sales Mix NLJ exchange few nylon jackets and more leather jackets than budgeted. Since the leather jacket has a higher standard contribution margin per unit than the nylon jackets ($46.50...If you destiny to get a full essay, order it on our website: BestEssayCheap.com

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