Question - Lori White is the chief executive of a division of Visions, Inc. Lori's division makes high-quality frames that sell for premium prices. For the most recent budget year, her division expected to sell 80,000 frames and receive $9.6 million. Actual sales and revenues were 100,000 frames and $11 million, respectively. Lori delegates all marketing and sales related decisions (including pricing) to her marketing manager.
a. Should Lori be please with the revenue performance?
b. Suppose instead that the actual sales were 70,000 frames for revenues of $9,100,000. Should Lori be upset with the revenue performance? List some of the issues that Lori should look into when analyzing this performance.