Question - Below is a performance report that compares budgeted and actual profit of Boyles Beer for the month of April:
|
|
Budget
|
Actual
|
Difference
|
|
Sales
|
$200,000
|
$202,000
|
$2,000
|
|
Less:
|
|
|
|
|
Cost of ingredients
|
$162,000
|
$166,000
|
$4,000
|
|
Salaries
|
$31,000
|
$31,200
|
$200
|
|
|
|
|
|
|
Controllable Profit
|
$47,000
|
$44,800
|
-$2,200
|
In evaluating the department in terms of its increase in sales and expenses, what will be most important to investigate?
A) Sales
B) Cost of ingredients
C) Salaries
D) All three components have equal importance.