The following is an extract from the end of year marketing report for a business. Planned sales (S) Actual sales (S) Variance from target (%) Region A Salesperson 1 1 200 000 1 000 000 25 Salesperson 2 -50 Salesperson 3 -25 Region B Salesperson 4 1 000 000 1 000 000 50 Salesperson 5 50 Salesperson 6 -75 Region C Salesperson 7 800 000 1 000 000 33 Salesperson 8 50 Salesperson 9 0

SSCE HSC Business Studies Marketing strategies: The following is an extract from

The following is an extract from the end of year marketing report for a business - HSC - SSCE Business Studies - Question 19 - 2013 - Paper 1

Question 19

The following is an extract from the end of year marketing report for a business. Planned sales (S) Actual sales (S) Variance from target (%) Region A Salesp... show full transcript

Worked Solution & Example Answer:The following is an extract from the end of year marketing report for a business - HSC - SSCE Business Studies - Question 19 - 2013 - Paper 1

Step 1

Calculate variance for Salesperson 1 in Region A

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Answer

The variance for Salesperson 1 can be calculated as follows:

$\text{Variance} = \frac{\text{Actual Sales} - \text{Planned Sales}}{\text{Planned Sales}} \times 100$

Substituting the values:

$\text{Variance} = \frac{1 000 000 - 1 200 000}{1 200 000} \times 100 = -16.67\%$

Thus, the value of -50 indicates an incorrect entry for Salesperson 2.

Step 2

Calculate variance for Salesperson 4 in Region B

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Answer

Salesperson 4 achieved exactly the planned sales. Therefore, the variance is:

$\text{Variance} = \frac{1 000 000 - 1 000 000}{1 000 000} \times 100 = 0\%$

Step 3

Calculate variance for Salesperson 7 in Region C

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Answer

For Salesperson 7, the variance is calculated as follows:

$\text{Variance} = \frac{1 000 000 - 800 000}{800 000} \times 100 = 25\%$

Step 4

Identify total variance for all salespersons

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Answer

To find the total variance, sum the individual variances of each salesperson in all regions. This will give a complete overview of performance relative to the targets.

The following is an extract from the end of year marketing report for a business - HSC - SSCE Business Studies - Question 19 - 2013 - Paper 1

Worked Solution & Example Answer:The following is an extract from the end of year marketing report for a business - HSC - SSCE Business Studies - Question 19 - 2013 - Paper 1

Calculate variance for Salesperson 1 in Region A

Calculate variance for Salesperson 4 in Region B

Calculate variance for Salesperson 7 in Region C

Identify total variance for all salespersons

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