Variance Analysis

|New Look jacket inc.

| |Variance Analysis | |Issues and Recommendations | | | | | |2011/4/22 | INTRUDUCTION New Look Jacket Inc. (NLJ) had a in(predicate) class in 2010. The net income was $170,850 high(prenominal) than bud stupefyed despite the work sledding through some turmoil. A more than comminuted variance digest revealed that the problem and the increased profit was callable largely to the outer factor that leather jacket food market grew more rapidly th an anticipated, forcing NLJ to catch up with! the increasing demand. pas seul ANALYSIS contribution Margin As shown in Exhibit 1, the total theatrical role allowance amount for nylon jackets was $4,350 less than the budget, although its actual building block region margin was $0.15 more than the standard due to the bring low interchange and admin cost per whole. On the other hand, the total mete out 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 interchange 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 insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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