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b. Static budget variance=$6228F
Flexible budget variance=$3172U
Sales volume variance=$9400F proof: $6228F=$3172U+9400F In my opinion, flexible budget variance and sales volume variance are both controllable as they can be managed by the manager. For example, sales volume variance can be improved if the manager improves the work efficiency and flexible budget variance can be improved if he controls the sales price and variable cost. Jatin, do we need to calculate fixed expense variance? I can't find this calculation in the module. Also, just a small suggestion, you may put "F"(positive) or "U(negative) beside every variance, such as those in the table in a and three variances in b.

We can say that overall, location is properly managed by manager except :
1) Average revenue per vehicle reduced to 9.5 from 10 per vehicle. Due to this we made a loss of 3173 in margin
2) Fixed expense was not properly incurred. Expense increased by 1180. Note: As we don't have bifurcation of fixed expense, we believe that all the expense incurred in this category would be controllable.

Considering following we can say that, location is properly managed.
1) Location profit increase by 5048 compare to 230 (Un controllable portion removed from budget and revised budget considered)
2) Work efficiency is increased. Average vehicle washed per hour was targeted 23/hour which reach to 27/hour.

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1 Return on assets (ROA) is the measure of profit earned before interest expense in relation to the assets employed by an entity. It is calculated by expressing net income as a percentage of average total assets. The term is similar to return on investment.
Question 2 (8 marks)
RevGenR Seats Incorporated — variance analysis
RevGenR Seats Incorporated manufactures golf cart seats and mobility vehicle seats. Here are the

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