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Category > Management Posted 18 Aug 2017 My Price 15.00

Planning and c ont r ol, f eedback.

Planning and c ont r ol, f eedback.

In April 2008, Bérangère Saunier, editor of Th e Eu r opea n Spo r tin g New s (ESN), decides to reduce the price per newspaper from €0.70 in April 2008 to €0.50 starting 1 May 2008. Actual paid circulation in April is 7.5 million (250 000 per day × 30 days). Saunier estimates that the €0.20 price reduction would increase paid circulation in May to 12.4 million (400 000 × 31 days). The actual May circulation turns out to be 13 640 000 (440 000 × 31 days). Assume that one goal of ESN is to increase operating profit. The budgeted increase in circulation would enable ESN to charge higher advertising rates in later months of 2008 if those budgeted gains actually occur. The actual price paid in May 2008 was the budgeted

€0.50 per newspaper.

 

Required

1 Distinguish between planning and control at ESN, giving an example of each.

2 Prepare a newspaper revenue performance report for ESN for May 2008 showing the actual results, budgeted amounts and the variance.

3 Give two types of action Saunier might take based on feedback on the May 2008 circula- tion revenue.

Answers

Alpha Geek
(8)
Status NEW Posted 18 Aug 2017 10:08 AM My Price 15.00

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Attachments

file 1503053311-736793_1_636383945153241406_ESN-SALES-IN-MAY--15-AUGUST-2017.xlsx preview (44 words )
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