WILL PAY YOU $10 bucks via PAYPAL

blablah123 · #1 Dec 13, 2006, 02:18 PM

PLEASE HELP TO FIGURE OUT THIS DILEMMA AND THE FIRST ONE TO RESPOND WITH SATISFACTORY ANSWERS, I WILL PAY $10 BUCKS VIA PAYPAL.

I am analyzing a fact pattern as such:

A corporation has a 75% variance in their net income. The actual income was 40% lower than the budgeted amount. The budgeted income was based on prior year’s performance. Their gross revenue is around 25 million dollars. Their gross margin ratio for the entire business is 40% and net income for the year ended was 1 million.

Discuss using concepts of: assets management; costs allocation; contribution margin & segmented income statement, budgeting & variance analysis; lastly performance measurement. You are to show how these accounting tools can help N&K understand what happened and how to prevent it in the future.



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