Budgeting benefitsDoug Ramirez owns a chain of travel goods stores, Ramirez Travel Goods. Last year, his salesstaff sold 20,000 suitcases at an average sales price of $190. Variable expenses were 75% ofsales revenue, and the total fixed expense was $250,000. This year, the chain sold moreexpensive product lines. Sales were 15,000 suitcases at an average price of $290. Thevariable expense percentage and the total fixed expenses were the same both years.Ramirez evaluates the chain manager by com- paring this year's income with last year'sincome.Prepare a performance report for this year, which compares this year's result to last year'sresults. How would you improve Ramirez's performance evaluation system to better analyzethis year's results?

Performance Analysis of Ramirez Travel Goods While analyzing Operating Profit from the last year to…

Budgeting benefits Doug Ramirez owns a chain of travel goods stores, Ramirez Travel Goods. Last year, staff sold 20,000 suitcases at an average sales price of $190. Variable expenses were 75% of sales revenue, and the total fixed expense was $250,000. This year, the chain sold more expensive product lines. Sales were 15,000 suitcases at an average price of $290. The his sales variable expense percentage and the total fixed expenses were the same both years. Ramirez evaluates the chain manager by com- paring this year's income with last year's income. Prepare a performance report for this year, which compares this year's result to last year's results. How would you improve Ramirez's performance evaluation system to better analyze this year's results?

Budgeting benefits Doug Ramirez owns a chain of travel goods stores, Ramirez Travel Goods. Last year, staff sold 20,000 suitcases at an average sales price of $190. Variable expenses were 75% of sales revenue, and the total fixed expense was $250,000. This year, the chain sold more expensive product lines. Sales were 15,000 suitcases at an average price of $290. The his sales variable expense percentage and the total fixed expenses were the same both years. Ramirez evaluates the chain manager by com- paring this year's income with last year's income. Prepare a performance report for this year, which compares this year's result to last year's results. How would you improve Ramirez's performance evaluation system to better analyze this year's results?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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