Mile High Cycles Essay

251 WordsFeb 4, 20142 Pages
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

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