Reference no: EM132583485
Question a) Marcia's Leather Knits makes and sells leather jackets. Given the following budget and actual data, complete the company's comprehensive performance report (assume static budget of 1,200 units and fixed expenses identical to flexible budget).
2020
Budget data
Average sale price per jacket $500
Sales volume 1,500
Supervisor salary $80,000
Number of supervisors 2
Worker hourly rate $20
Materials per jacket $100
Labour hours required per jacket 8
Sales commission per jacket $50
Factory space rental $3,000 per month
Retail space rental $2,500 per month
Janitorial services $1,000 per month 2020
Actual data
Sales revenue $694,200
Sales volume 1,390
Materials per jacket $96.15
Supervisor salaries $152,000
Worker wages $226,223
Sales commissions $70,500
Janitorial services $13,000
Factory space rental $36,000
Retail space rental $30,000
Question b) Make some conclusions about the company's performance. Discuss in detail what was done well and what could be improved in 2021.