Prepare a profit variance analysis for sell inc

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Profit variance analysis in a service organization. Sell, Inc., is a marketing consulting firm that earns revenues by billing clients for hours worked. Last year, Sell, Inc.'s billable hours were up 10 percent from expected levels, but, as the following data show, profits were lower than anticipated.

	Actual Results	Master Budget
Billable Hoursa	22,000 Hours	20,000 Hours
Revenue	$2,300,000	$2,000,000
Production Costs:
Professional Salaries (all variable)	1,550,000	1,200,000
Other Variable Costs (e.g., supplies, certain computer services)	250,000	200,000
General Administrative (all fixed)	400,000	400,000
Corporate Client Profit	$ 100,000	$ 200,000

Prepare a profit variance analysis for Sell, Inc.

Reference no: EM13903129

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