BU330 Accounting for Managers - Assignment 4 - Ashworth College - 39752

Solution Posted by
Solution Detail
Price: $8.00
  • From: Finance,
  • Posted on: Wed 25 Dec, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

Portia Carter is the president of a company that owns six multiplex movie theaters.  Carter has delegated decision-making authority to the theater managers for all decisions except those relating to capital expenditures and film selection.  Max Burgman, the manager of the Park Theater, had the following master budget and actual results for the month.


 

Master

Actual

Budget

Results

Tickets sold

120,000

480,000

 

Revenue--tickets

$  840,000

$  880,000

 

Revenue--concessions

480,000

330,000

Total revenue

$1,320,000

$1,210,000

Controllable variable costs

 

 

 

Concessions

120,000

99,000

 

Direct labor

420,000

330,000

 

Variable overhead

540,000

550,000

Contribution margin

$  240,000

$  231,000

Controllable fixed costs

 

 

 

Rent

55,000

55,000

 

Other administrative expenses

45,000

50,000

Theater operating income

$  140,000

$  126,000

1. Assuming that the theaters are profit centers, prepare a performance report for the Park Theater u

2.  Evaluate Burgman’s performance as a manager. (25 points)

3. Assume that the managers are assigned responsibility for capital expenditures and that the theaters are thus investment centers.  

A) and B) included in answer but cannot mention in question due to word limit

Solution Description

 

 

Entire sol

Attachments
1010.docx
1010.docx