Variance Analysis

Westport Furniture
2001 Budget Executive Summary

General To hit Mr. Westports profit goal of $70000, our 2001 budget is very aggressive in expense reductions (especially in direct labor) and somewhat optimistic on revenue given the pressure from plastic tables. Margin widens 5% points from 28% to 33%.

Sales We have forecasted a slowing in sales growth due to increaed competition from plastic tables. The 4% price increase might need to be dropped if we see soft orders in Q2.

Materials Our leg supplier has committed to hold prices for 2001 and we expect wood to be up 2-3%.

Direct Labor We continue to work to reduce our direct labor per table (“DLT”). It looks like we decreased DLT from 1.6 to 1.5 in 2000. Our plan calls for continued reduction to 1.4 in 2001. Before leaving Thompson Tables and joining us, John indicated they were running around 1.25 per table (a $2.50 per table cost advantage versus our 1.5 hours).

Overhead Will implement cost reductions (yet to be determined) to hit profit target of $70,000.

G&A Need to find cost cuts to hit profit target. Does not include any budget for R&D on plastic table product. We strongly recommend Mr. Westport authorize the $75,000 investment in product development requested this summer.

Risks Primary risks are that increasing competition from plastic tables continues to pressure sales volume and pricing. Also, goal to improve productivity from 1.5 hrs per table to 1.4 hours is aggressive on top of gains in 2000.

Help with variance analysis structure and question memo at end. Thanks

Westport Case

(See attached file for full problem description)

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with AssignmentHelpWeb
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business Studies
Excellent service - thank you!
Customer 452469, February 20th, 2023
excellent loved the services
Customer 452443, September 23rd, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
Business Studies
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
Business Studies
Thank you!
Customer 452451, November 27th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat