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Big Boats, Inc, makes luxury speed boats for water skiing. Actual results and the static budget for the year are presented below. Sales commissions are computed at 5% of gross sales. The expected ROI for this subsidiary is 26% The budget was based on 100 boats being sold. Actual sales for the year was 80 boats. The showroom is 10,000 square feet. Management has a policy of reviewing in more detall any overall budget variances in excess of 10% if the amount is $10,000 or greater. A c. D. B. Hetien con invatment rund is the neeret whide dobly rund to the neartit whole toles rewe to the hearest whole delar rourd to the rearest whele detar rovid te the searst whole datar 129 A B C D F (b) What was the actual sales per square foot? round to the nearest whole dollar 6. (a) What is the expected gross profit margin per the static budget? (b) What was the actual gross profit margin? round to the nearest tenth percent round to the nearest tenth percent 7. (a) What is the expected operating profit margin per the static budget? (b) What was the actual operating profit margin? round to the nearest tenth percent round to the nearest tenth percent 8. Assume the company also uses inventory turnover as a KPI. The formula for the inventory turnover ratio is cost of goods sold divided by average inventory. (a) What is the expected inventory turnover per the static budget? (b) What was the actual inventory turnover? round to the nearest hundredth 8.1 Also compute the inventory turnover in days. round to the nearest hundredth The formula is 365 days divided by inventory turnover ratio. (a) What is the expected inventory turnover, in days, per the static budget? (b) What was the actual inventory turnover, in days? round to the nearest day round to the nearest day What do you conclude from all of this information

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