as sales manager magic johnson was given the following static 272937

As sales manager, Magic Johnson was given the following static budget report for selling expenses in the Clothing Department of Lakers Company for the month of October.



As a result of this budget report, Magic was called into the president’s office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Magic knew something was wrong with the performance report that he had been given.

However, he was not sure what to do, and comes to you for advice.

Instructions

(a) Prepare a budget report based on flexible budget data to help Magic.

(b) Should Magic have been reprimanded? Explain.

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