The Flashlight Company Projected Yearly Sales of 12,000 Units at $15.00

question 50

Essay

The Flashlight Company projected yearly sales of 12,000 units at $15.00 per unit. Actual sales for the year were 15,000 units at $16.00 per unit. Variable expenses, budgeted at $10.00 per unit, actually amounted to $15.00 per unit. Fixed expenses, budgeted at $50,000, actually totaled $48,000.
Prepare the Flashlight Company's income statement performance report for the year ended December 31, including both flexible budget variances and sales volume variances.

Understand generic business strategies and their application to gain competitive advantage in any industry or product area.

Comprehend the role of input and output metrics in enhancing a company's innovation and product-development capabilities.

Understand the four generic business strategies: Cost Leadership, Differentiation, Cost Focus, and Differentiation Focus.

Know the historical application of these strategies by examining case studies such as Henry Ford’s Model T production.

---

Definitions:

Infrared Light

Electromagnetic radiation with wavelengths longer than visible light but shorter than microwaves, often used in heating, night vision equipment, and remote controls.

Brain

The organ in the head that controls thought, memory, feelings, and activity.

fNIRS

Functional Near-Infrared Spectroscopy, a neuroimaging method used to measure brain activity based on hemodynamic responses.

Resting-State fMRIs

A functional magnetic resonance imaging technique for measuring brain activity by detecting changes associated with blood flow when the subject is not performing any tasks.