Next Year's Budget for Howard, Inc At the End of the Year, the Total Fixed Costs

question 74

Essay

Next year's budget for Howard, Inc., a multi-product company, is given below: $\begin{array}{lcc}&\text { Product A } & \text { Product B }\\\text { Sales }&\$1,890,000&\$1,377,000 \\\text { Variable costs } &919,800&594,000\\\text { Fixed costs }&500,000&500,000\\\text {Net income } & 470,200&283,000 \\\text {Units}& 252,00 &108,000\\\text { Market share } & 12.5 \% & 20.0 \%\end{array}$

At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold. Howard analyzes the effects its sales variances have on the profitability of the company.
$$\begin{array} { c c c c } \text { Product Line } & \text { Units } & \text { Sales } & \text { Mkt share } \\\text { A } & 252,230 & \$ 1,848,579 & 15.0 \% \\\text { B } & 113,770 & \$ 1,479,010 & 17.0 \%\end{array}$$
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the sales activity variance for each product.
b. Compute the market share variance for each product.
c. Compute the industry volume variance for each product.

Difference between progressive and positive discipline and the emphasis on encouragement in positive discipline.

Examine the ethical implications in handling promotional decisions in scenarios involving potential discrimination.

Understand the importance of communication and enforcement of organizational values and standards for ethical employee treatment.

Compare and contrast progressive and positive discipline, highlighting the problem-solving approach in the latter.