Compagnie du Froid, S.A. Compagnie du Froid, S.A., one major ice-cream company, was evaluating its three regions’ performance, but the traditional bonus approach of paying 2% of corporate profits did not seem appropriate at this time. The three regions had different financial results and varied market conditions which include the poor performance of the Spanish region, the over 20% growth of France region, Italy’s achievement of sales goal and further expansion, and inter transfer of goods between two regions. The company needs to recognize the performances of individual business entities from the overall performance of the entire business. Then, it can work out an equitable bonus program to reward the three regional heads, to motivate its future growth and expansion, to achieve the company’s goals and to facilitate the cooperation between three regions. The variance analysis can help Compagnie du Froid, S.A. clarify the situation by investigating the discrepancy to find the cause of problems and evaluate the performances of three regions fairly. The poor financial consequence of Spanish region is the combination of failure of new machines, running out of capacity, the higher expense and cost of transferred sales, unexpected and unfavorable temperature change, and price cut plus increase in advertising. We need a more equitable bonus program and right criteria to evaluate the performances of three entities and identify the area that needs improvement. The variance analysis examines the production efficiency by comparing the discrepancy between profit plan and actual numbers through the sales volume of ice-cream and specialties, the cost of goods sold and the selling and administrative expenses. We found the performance of Spanish region is not as dismal as we thought. It did well on the sales of specialties, though the transferred costs really make its profit