Variance Analysis

|New Look jacket inc.

| |Variance Analysis | |Issues and Recommendations | | | | | |2011/4/22 | INTRUDUCTION New Look Jacket Inc. (NLJ) had a in(predicate) category in 2010. The net income was $170,850 higher(prenominal)(prenominal) than bud stupefyed despite the work termination through some turmoil. A more comminuted variance epitome revealed that the problem and the increased profit was callable largely to the outer factor that leather j acket food market grew more rapidly than an! ticipated, forcing NLJ to catch up with the increasing demand. pas seul ANALYSIS donation Margin As shown in Exhibit 1, the total representation role allowance amount for nylon jackets was $4,350 less than the budget, although its actual unit of measurement of measurement region margin was $0.15 more than the standard due to the depress interchange and admin cost per unit. On the other hand, the total arrogate 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 change 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 motive to get a full essay, order it on our website: BestEssayCheap.com

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