Software Associates

Case 3: Software Associates

Q1, Exhibit 1

| Budget ($) | Actual ($) | Variance ($) | | % change |

Revenues | 3231900 | 3264000 | 32100 | F | 1.0% |

Expenses | 2625550 | 2967610 | 342060 | U | 13.0% |

Op. Profit | 606350 | 296390 | -309960 | U | -51.1% |

Q2, Exhibit 2

Expenses | | | | | |

| Budget ($) | Actual ($) | Variance ($) | | % change |

Consultants' Salaries and Fringe Expenses | 1748250 | 2029050 | 280800 | U | 16.1% |

Op. Expenses | 877300 | 938560 | 61260 | U | 7.0% |

Analysis on Exhibit 2: | 　 | 　 | 　 | 　 | 　 |

Profit | 　 | 　 | 　 | 　 | 　 |

Hour billed per consultant | 3.132743363 | 　 | 345.1327434 | 342 | 0.9% |

　 | 　 | 　 | 　 | 　 | 　 |

Direct labour | 　 | 　 | 　 | 　 | 　 |

Consultant's Salary per hour billed | 3.342712551 | U | 52.02692308 | 48.68421053 | 6.9% |

Salary per consultant | 1306.19469 | U | 17956.19469 | 16650 | 7.8% |

　 | 　 | 　 | 　 | 　 | 　 |

Contribution margin | -9.652712551 | U | 31.66307692 | 41.31578947 | -23.4% |

　 | Budgeted | 　 | Budget (Flexible) | 　 | Variance | 　 | Actual | 　 | Variance |

　 | $/hour billed | Total | $/hour billed | Total | 　 | 　 | $/hour billed | Total | 　 |

Revenue | 90 | 3231900 | 90 | 3510000 | -278100 | 　 | 84 | 3263910 | -246090 |

　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 |

Expneses | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 |

Consultants' Salaries and Fringe | 49 | 1748250 | 49 | 1748250 | 0 | 　 | 52 | 2029050 | 280800 |

　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 |

Contribution Margin | 　 | 1483650 | 　 | 1761750 | -278100 | 　 | 　 | 1234860 | -526890 |

　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 |

Op. Expenses | 　 | 877300 | 　 | 877300 | 0 | 　 | 　 | 938560 | 61260 |

　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 | 　 |

Net Profit | 　 | 606350 | 　 | 884450 | -278100 | 　 | 　 | 296300 | -588150 |

Q3, Exhibit 3

　 | Actual | Budget | 　 | spending variance | actual vc | budget vc | volume variance |

Advertising and promotion | 22,100...