Floyd Outlandiss, sales manager:
* As a sales manager he performed really well because the company sold more units that they initially budgeted, which resulted in the increase in sales revenue
* The price stayed the same that is why all variances in revenue were because of a higher volume of sales
* Therefore, I concluded that the price volume variances are favorable
Fitz Matoosh, production manager:
* I think that Fitz Matoosh performed efficiently
* Fitz is responsible for a suitable range for grade of inputs.
* For evaluating Fitz’s performance, I used the efficiency variance because this variance shows the difference in the inputs that are used for one output unit and the budgeted number of inputs used one output
* As a result, Fitz used less inputs than budgeted to produce one output
* Efficiency variances are negative, and therefore are favorable
Shelly B. Swift, purchasing manager:
* The first assumption is that purchasing manager did not do a good job
* The price variance is the difference in the actual price per unit of input and the budgeted price per unit of input.
* Since the actual price per unit of input was more than the budgeted price per unit of input, the company had unfavorable results in this case
* However, the increase in price per unit of input led to a favorable efficiency variance
* The favorable efficiency variances are greater than the unfavorable price variances.
* Purchasing more expensive inputs lead to greater efficiency
* As a result it is fair to say that purchasing manager also performed well