Carlene Hatcher
Capability Examples
Mackie's Clothing Boutique
Income Statement and Budget Variance Analysis for 2021 Q1
						2021 Q1 Variance Analysis
						Budget	Actual	Budget Performance: Variance	Variance Means				Budget KPI for Control Points	Reason for Variance                                       &                                                                    How to Improve
Revenue:														Need salesperson training for customer service and upselling. Need expand store hours.
	Sales					$38,000	$37,682	1%	Missed sales target by 1%	Budget	#	Sales
	Returns					$0	$0			Actual	#
			Net Sales			$38,000	$37,682
Cost of Sales4/16/2023
	Direct Costs									Budget	#	Inventory Purchases		Need to utilize the planning tools in this workbook to better budget and verify inventory quantities
		Beginning Inventory				$0	$0			Actual	#
		Total Purchase Price of Merchandise Sold				$18,000	$17,406	3%	Purchased less than budgeted
		Less Ending Inventory				$5,000	$5,130	-3%	Ending inventory higher than budgeted	Budget	#	Ending Inventory
			Net Inventory			$13,000	$12,276			Actual	#
			Shipping			$350	$350
			Total Direct Costs			$13,350	$12,626
	Indirect Costs
		Storage cost (warehouse)				$150	$150
			Total Indirect Costs			$150	$150
										Budget	#	COGS
			Total COGS			$13,500	$12,776	6%		Actual	#
			COGS Margin			36%	34%
Gross Profit/Loss						$24,500	$24,906					Actual        Gross Profit	$24,906
Gross Profit Margin						65%	66%						66%
Operating Expenses:
	Rent					$1,300	$1,300
	Utilities					$250	$250
	Wages					$16,640	$16,640			Budget	#	Operating Expenses
		Total Operating Expenses				$18,190	$18,190	0%		Actual	#
		Operating Expenses Margin				48%	48%
Other Expenses:
	Displays for the merchandise					$399	$399
	Cash register					$500	$500
	POS System					$1,000	$1,000
	Office Supplies					$45	$45			Budget	#	Other Expenses
		Total Other Expenses				$1,944	$1,944	0%		Actual	#
Taxes
	Income Taxes					$3,526	$3,328	6%	Actual income taxes were less than budgeted
Net Profit						$840	$1,444	-42%				Actual              Net Profit	$1,444
Net Profit Margin						2%	4%						4%