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Damian is a Haindresser who nuns a salion but does not work there on a regular basks as he has other businesses. For smpllcty the services are categorised as elther "Colour and Trim" or "Trim". Stafi are pald a salary (which is included in fxed costs) and commisaion which is the only vartable cost. Damian has set up a budgetary system to monitor the varlable revenue and costs of the Salon as follows: Required a) For the month of April i) provide a monthly budget income statement and an income statement of actual performance. ( 3 marks) ii) provide a statement of reconciliation between the monthly budget and the actual by calculating: Price variances, Quantity variances, Mix and quantity variances based on the number of services Cost variances. Required a) For the month of April 1) provide a monthly budget income statement and an income statement of actual performance. (3 marks) ii) provide a statement of reconciliation between the monthly budget and the actual by calculating: Price variances, Quantity variances, Mix and quantity variances based on the number of services Cost variances. (10 marks) b) Explain to Damian the performance for the month as shown by your variance statement. (5 marks) c) Based on the budgetary estimates, if each "Trim" takes 20 minutes and each "Colour and Trim" takes 40 minutes (this does not include the time taken for the colour to set as the stylist can do other work at that time), using the budget price and commission, explain which service is the more profitable. Also explore the amount of capacity the salon can use and is using. How would your explanation help Damian when managing, pricing and marketing the services of the salon? ( 7 marks) (total 25 marks)

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