Compagnie Du Froid | Case Study Solution | Case Study Analysis

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Compagnie Du Froid

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An analysis of the Compagnie du Froid case is to be prepared by each student. The

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case is included in the course packet. Students should use the following
instructions and questions to guide their analysis.
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1. Complete the following tables for the French Region to analyze the budget
variances. Comparable tables for the Italian and Spanish Regions are found on the
website. Complete these tables as well. For Sales Revenue, the amounts listed
under Actual Input ? Budgeted Price should be the same as those listed under
Flexible Budget.

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2. What insights can be gained from the preceding analysis? What are the most
significant variances between actual and budget for each of the three regions? Are
these price, usage, or sales-volume variances? What are the reasons for these
variances?

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3. Based on the amounts in tables, calculate the net sales-volume variance for ice
cream and specialties within each region. (Net sales-volume variance is based on
both revenue and cost of goods sold.) How much of the sales-volume variance is

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attributable to the weather?

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4. Consider the budgeted and actual selling and administrative expenses. Note that

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these expenses are reported in Exhibits 2-4 of the case but are not included in the

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tables I provide. What are the most significant variances for these items? What are

here.

the reasons for these variances?

5. How do you evaluate the performance of the managers in each of the three
regions? What criteria are most important in evaluating performance? Consider the
budget variances that you calculated in the tables. Are all favorable variances a
sign of good performance on the part of the manager? Are all unfavorable
variances a sign of poor performan ...

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