Data Are Shown Below on the Quality Rating, Volume, Average

question 41

Essay

Data are shown below on the quality rating, volume, average wait time from pull-up to completion, average unit purchase, and revenue tier for franchises of a certain fast food restaurant in Area 6.
​​ $\begin{array}{l}\text { Area } 6 \text { Franchise Data }\\\begin{array}{|l|l|c|c|c|c|}\hline \text { Franchise } & \text { Quality Rating } & \begin{array}{c}\text { Volume } \\\text { Cumber }\end{array} & \begin{array}{c}\text { Wait Time } \\\text { Numec.) }\end{array} & \begin{array}{c}\text { Average Unit } \\\text { Purchase (\$) }\end{array} & \begin{array}{c}\text { Revenue } \\\text { Tier }\end{array} \\\hline 124&\text { Above Average }&\text { High }&175&13.25&4\\152&\text { Acceptable }&\text { LOW }&181&10.02&2\\452&\text { Above Average }&\text { LOW }&179&13.56&4\\462&\text { Above Average }&\text { Medium }&175&12.12&3\\485&\text { Superior }&\text { High }&171&15.11&4\\567&\text { Acceptable }&\text { High }&178&9.78&2\\568&\text { Above Average }&\text { Medium }&177&12.54&4\\584&\text { Above Average }&\text { Medium }&175&11.54&3\\625&\text { Superior }&\text { Medium }&175&11.14&3\\875&\text { Superior }&\text { LOW }&180&8.78&1\\\end{array}\end{array}$ ​
Using the table below, complete the crosstabulation chart of quality rating and categorized daily volume.
​ Crosstabulation of Quality Rating and Daily Units for Area 6 Franchises
Daily Units
$\begin{array}{|l|l|l|l|l|}\hline \text { Quality Rating } & \text { Low } & \text { Medium } & \text { High } & \text { Total } \\\hline \text { Acceptable } & & & & \\\hline \text { Above Average } & & & & \\\hline \text { Superior } & & & & \\\hline \text { Total } & & & & \\\hline\end{array}$

Understand the role of budget variance analysis in planning and control.

Learn the calculation of net operating income across different budgeting scenarios.

Understand the impact of activity level changes on budgeting and financial outcomes.

Understand the concept of budgeting in service, manufacturing, and medical businesses.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenues, indicating profitability.

Straight-Line Rate

A method of calculating depreciation by dividing the difference between an asset's cost and its salvage value by the number of years it is expected to be used.

Annual Rate

The interest rate or growth rate over a period of one year, used for comparing investment returns or loan costs.

Salvage Value

The estimated residual value of an asset at the end of its useful life, which is considered when calculating depreciation.