A financial team has been properly selected and charged to proceed with its analysis of EEV's financial statements. In the course of its evaluation, it will be assessing the firm's operating performance, benchmarking its competitors, and looking at the industry using financial ratios as its source of measurement.
The income statement measures the firm's profitability over a period of time: 1 month, 1 quarter, or 1 year. The statement focuses on the operations of the firm and explains what was produced and sold. In essence, it summarizes revenues generated and the results.
Tony understands that managing profitability involves overseeing 3 interrelated factors: volume, cost, and price. He has given you the job of conducting an in-depth analysis of EEV's operating performance. You will analyze the following factors:
• The sales volume, cost, and price of each specific product
• Each product's contribution to sales in terms of profit
• The relationship between sales and supportive employment
Tony has made it clear that he expects you to initiate a constructive discussion by describing your findings both in narrative form and through an organized numeric presentation.
Please see the Excel sheet attached in order to view the EEV income statement.
• Review the sales volume, cost, and price of each specific product.
• Review each product's contribution to sales in terms of profit.
• Describe the relationship between sales and supportive employment.
• Provide an Excel spreadsheet that depicts your findings along with your analysis.