Prepare a two page report where you analyze each variance on the income reconciliation schedule with explanations supported by calculations. You should focus on why the variances occurred based on Scooter s business circumstances. I expect to infer reasons based on the numbers and Scooter’s business model (vacation scooters). Clearly delineate your analysis with headings for sales mix, direct materials, direct labor, variable overhead, & selling & general administration. Use the detailed numbers in the schedule of standard and actual costs for the deluxe and beginner scooters for calculations to support your analysis. 2. Based on your analysis from requirement 1, generate a one page professional memo with three recommendations for Junior on how to improve Scooter’s operating income. Because of the company’s competitive situation, price changes are not a viable recommendation.
