Exam

Q14Complete the table below to examine the budgeted profitability of each sales channel per unit. (3 marks) B2B Online Retail Sales   (£ per unit) 45 64 75 variable cost (£ per unit) 16 15 14 Direct costs
(£ per unit) 18 19 20 Contribution (£ per unit) Cost of sales  (£ per unit) Gross profit
(£ per unit) Q15 Chain&Gear would like to incorporate the profitability analysis in Q14 above, into monthly reporting, and is considering the following enhancements to the regular management report:(a) Describe how ‘variance analysis’ could be presented in the profitability report. (2 marks)(b) What would be the benefit of variance analysis in the report?(2 marks)Q15 Continued(c) Describe how forecasting information could be presented in the profitability report. (2 marks)(d) What would be the benefit of forecasting information in the report?                                                                                                                                                    (2 marks) Present Value Table Annuity Table Discount Rate Discount Rate End of Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%   No. of Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 Discount Rate Discount Rate End of Period 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 2 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 3 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 4 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 5 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 6 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 6 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 7 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 8 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 8 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 9 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 9 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 10 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 Discount Rate Discount Rate End of Period 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% 1 0.826 0.820 0.813 0.806 0.800 0.794 0.787 0.781 0.775 0.769 1 0.826 0.820 0.813 0.806 0.800 0.794 0.787 0.781 0.775 0.769 2 0.683 0.672 0.661 0.650 0.640 0.630 0.620 0.610 0.601 0.592 2 1.509 1.492 1.474 1.457 1.440 1.424 1.407 1.392 1.376 1.361 3 0.564 0.551 0.537 0.524 0.512 0.500 0.488 0.477 0.466 0.455 3 2.074 2.042 2.011 1.981 1.952 1.923 1.896 1.868 1.842 1.816 4 0.467 0.451 0.437 0.423 0.410 0.397 0.384 0.373 0.361 0.350 4 2.540 2.494 2.448 2.404 2.362 2.320 2.280 2.241 2.203 2.166 5 0.386 0.370 0.355 0.341 0.328 0.315 0.303 0.291 0.280 0.269 5 2.926 2.864 2.803 2.745 2.689 2.635 2.583 2.532 2.483 2.436 6 0.319 0.303 0.289 0.275 0.262 0.250 0.238 0.227 0.217 0.207 6 3.245 3.167 3.092 3.020 2.951 2.885 2.821 2.759 2.700 2.643 7 0.263 0.249 0.235 0.222 0.210 0.198 0.188 0.178 0.168 0.159 7 3.508 3.416 3.327 3.242 3.161 3.083 3.009 2.937 2.868 2.802 8 0.218 0.204 0.191 0.179 0.168 0.157 0.148 0.139 0.130 0.123 8 3.726 3.619 3.518 3.421 3.329 3.241 3.156 3.076 2.999 2.925 9 0.180 0.167 0.155 0.144 0.134 0.125 0.116 0.108 0.101 0.094 9 3.905 3.786 3.673 3.566 3.463 3.366 3.273 3.184 3.100 3.019 10 0.149 0.137 0.126 0.116 0.107 0.099 0.092 0.085 0.078 0.073 10 4.054 3.923 3.799 3.682 3.571 3.465 3.364 3.269 3.178 3.092