This website uses cookies to ensure you have the best experience. Learn more

Jet2 Task 2 Essay

1535 words - 7 pages

A1. Budget Concerns Competition Bikes budget has several areas of concern that need to be address. 1. Units expected to be sold for year nine is 3510. Competition Bikes is predicting that they will sell 3510 Bikes but they only sold 3400 Bikes in year eight down 15% from year seven 4000 units sold. Competitions Bikes has budget to high because the current economic down turn is showing no signs of relief for the next three years. Many of Competition Bikes customers are sponsored riders and many sponsors have pulled their funding to their rides. Competition Bikes has not presents a plan that would support their projections. Competition Bikes should lower there should lower the expected units ...view middle of the document...

First for $55474 under Facility and general operation level cost and second for 54,000 under Facilities and general operation level expense. This is a duplication that is not necessary and should be removed from one of the categories. A2. Evaluate Flex Budget A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The flexible budget is more sophisticated and useful than a static budget, which remains at one amount regardless of the volume of activity. (Averkamp, 2013) Competition Bikes Variances 1. Net Sales Standard output $5,247,450, the actual output is $5,117,385. This is an unfavorable variance of -$130,065. This variance is caused by lower sales than predicted by Competition Bikes, they were expecting 3510 units sold but they only sold 3423 more than likely due to the down turn in the economy. 2. Direct Materials standard output $2,292,028, the actual out is $2,235,219. This is a favorable variance of -$56,809. This variance is caused by the reduce raw materials used to create 3423 units instead of 3510. Competition Bikes buys raw materials as they need them so they are able to control this expense. 3. Manufacturing Overhead standard output $331,798, actual output $323,574. This is a favorable variance of -$8,224. This variance is caused by reduce production of units because of lower sales.

4. Variable Selling expenses standard output $157,424, actual output is $153,522. This is a favorable variance of -$3.902. This variance is caused by reduced sales in unit. 5. Advertising Expenses standard output $28,412, the actual output $31,461. This is an unfavorable variance of $3,049. This variance is caused by Competition Bikes trying to increase their sales to meet their prediction of 3510 units sold. 6. Transportation Out standard out $105,300, actual out is $108,297. This is an unfavorable variance of $2,997. This expense should actually be lower because sales on units are down. This expense is high because Competition Bikes has fallen below the minimum monthly orders required under their new contract with the delivery company. The delivery company charges extra when these minimums are not met. 7. Distribution network Contracted Support standard out is $50,830, actual output is $50,460. This is a favorable variance of -$370. This is a selling expense that is lower due to lower sales. 8. Administrative Salaries standard output $170,000, actual output is $171,000. This is an unfavorable variance of $1000. This increase is due to the Competition Bikes efforts to increase sales. Overtime was authorized to work on advertising campaign. 9. Executive Compensation standard output is $220,000, actual output is $218,000. This is a favorable variance of -$2000. This variance is due to an executives not taking a bonus due to lower sales. 10. Employment taxes standard output $29,835, actual output $29758. This is a favorable variance of -$77. This variance is due to an employee furlough because of low sales.


Other Papers Like Jet2 Task 2

Financial Analysis – Jet2 Task 1

5510 words - 23 pages Financial Analysis – JET2 Task 1 Report for Competition Bikes, Inc. Competition Bikes, Inc was formed in 2001 and manufactures professional and performance bicycles used in a variety of racing events for expert riders. Bicycles produced by this company are ridden by 60% of all race winners and word of mouth has been their main marketing strategy. Competition Bikes is also the first company to use drive shaft technology in their bikes

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages -Behavior Therapy, 26(2), 63-88. Ellis, A. (2000). Can rational emotive behavior therapy (REBT) be effectively used with people who have devout beliefs in God and religion. Professional Psychology: Research and Practice, 31 (1), 29-33. Jones, S.L., & Butman, R.E. (1991). Modern psychotherapies: A comprehensive Christian appraisal. Downers Grove, IL: InterVarsity Press. Lega, L.I., & Ellis, A. (2001). Rational emotional behavior therapy (REBT) in

Holidays In Albania

1636 words - 7 pages evenings. Many well-known deejays such as Tiesto and Vendetta have given memorable shows in Vlora. Another Albanian city where you can enjoy your summer vacations is Saranda. The “pearl” of the Albanian Riviera, Saranda, lies deep in the South (Howe 2). Referring to Wikipedia, Saranda’s name comes from Greek language and means “Forty Saints” (“Saranda”). It is known for its boulevard parallel to the seaside, where tourists spend their evenings. The

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages , English soldiers they can feel the love from Henry, hence gained the needs of belongingness, this is one of needs in Maslow theory. Henry motivates their soldiers through the language he use. (Seargeant, 2009) Transformational leadership used by Henry, the relationship between Henry and English soldiers in terms of motivation and commitment. Under the leading of Henry, English soldiers regard this battle as commitment instead of task. (Weichun et al

Related Essays

Jet2 Task 2 Essay

1683 words - 7 pages Stacy Raudman 000202145 JET2 Task 2 A1 Discuss budgetary areas that raise concern in the budget planning In any business, a budget serves a specific purpose. It serves as a forecast of money coming in and money going out which then shows whether or not there is a profit. It also serves as a tool for making decisions. And, lastly, it is a means to monitor how a business is performing. Watching for profits and/or losses, will tell

Rjet Task 1 Essay

564 words - 3 pages . | | | |Task: | |Note: Be sure to submit a copy of your Excel workbook when submitting your JET2 Task 1 work. The evaluator will need a copy of | |your

Task 1 Competition Bikes Inc Essay

2370 words - 10 pages copy of your Excel workbook when submitting your JET2 Task 1 work.  The evaluator will need a copy of your data to ensure correct evaluation. A.  Prepare a summary report in which you do the following: 1.  Evaluate the company’s operational strengths and weaknesses based on the following: a.  Horizontal analysis results b.  Vertical analysis results c.  Trend analysis results d.  Ratio analysis results Note: Multiple strengths and

Jet2 Task 1 Essay

5274 words - 22 pages | Competition Bikes: Task 1 | | Jamila Mitchell | | Competition Bikes: Task 1 | | Jamila Mitchell | Western Governors University JET2 Financial Analysis Western Governors University JET2 Financial Analysis Competition Bikes: Task 1 Jamila Mitchell Operational Strengths and Weaknesses Horizontal Analysis To evaluate changes in financial statements, a horizontal analysis is necessary so the company can determine