Cssen realtors inc specializes in the sale of residential

Reference no: EM13584034

Cassen Realtors, Inc., specializes in the sale of residential properties. It earns its revenue by charging a percentage of the sales price. Commissions for sales persons, listing agents, and listing companies are its main costs. Business has improved steadily over the last 10 years. Bonnie Cassen, the managing partner of Cassen Realtors, receives a report summarizing the company's performance each year. The report for the most recet year appears below.

Cassen Realtors , Inc Performance Report for the Year ended December 31

	Budgeted	Actual	Difference Under (Over) Budget
Total Selling Fees	$2,052,000	$2,242,200	($190,200)

Variable costs
Sales commissons	$1,102,950	$1,205,183	($102,233)
Automobile	36,000	39,560	-3,560
Advertising	93,600	103,450	-9,850
Home repairs	77,400	89,240	-11,840
General overhead	656,100	716,970	-60,870
	$1,966,050	$2,154,403	-188,353


Fixed costs
General overhead	60,000	62,300	-2,300
Total costs	$2,026,050	$2,216,703	$190,653
Operating income	$25,950	$25,497	$453

1. Anaylze the performance report. What does it say about the company's performance? Is the performance report reliable? Explain your answer.

2. Calculate the budgeted selling fee and budgeted variable costs per home sale.

3. Prepare a performance report using a flexible budget based on the actual number of home sales.

4. Analyze the report you prepared in requirement

5. What does it say about the company's performance? Is the report reliable? Explain your answer.

6. What recommendations would you make to improve the company's performance next year?

Reference no: EM13584034

Questions Cloud

A solid disk r020 m m050 kg is suspended from the end of an : 1 a solid disk r0.20 m m0.50 kg is suspended from the end of an l0.30m long rod m0.30kg crosssectional area of 2.0

A number of post-1983 pennies and post-1964 quarters were : question a number of post-1983 pennies and post-1964 quarters were weighed. here is a summary of the resultspennies n

Using reliable sources write a summary of the concept of : using reliable sources write a summary of the concept of energy return on energy invested eroei. provide some

Calculate the per capita energy use for china and india : calculate the per capita energy use for china and india. the populations of each country should be obtained from

Cssen realtors inc specializes in the sale of residential : cassen realtors inc. specializes in the sale of residential properties. it earns its revenue by charging a percentage

Explain the following types of computerized information : health information systems can be divided into 4 categories clinical information systems management strategic decision

In how many ways can 9 identical indistinguishable billard : suppose there are 4 different bins labled a b c and d.in how many ways can 9 identical indistinguishable billard balls

Write a summary of the concept of energy return on energy : 1 calculate the per capita energy use for china and india. the populations of each country should be obtained from

Jay barnett and ted johnson formed bj sporting goods store : jay barnett and ted johnson formed bj sporting goods store a corporation on june 1 to operate a sporting goods store.

User Account

All Pages