In April 2014 B rang re Saunier editor of The Sporting News In April 2014, Bérangère Saunier, editor

In April 2014 B rang re Saunier editor of The Sporting News
In April 2014, Bérangère Saunier, editor of The Sporting News (SN), decides to reduce the price per newspaper from €0.70 in April 2014 to €0.50 starting 1 May 2014. Actual paid circulation in April is 7.5 million (250 000 per day × 30 days). Saunier estimates that the €0.20 price reduction would increase paid circulation in May to 12.4 million (400 000 × 31 days). The actual May circulation turns out to be 13 640 000 (440 000 × 31 days). Assume that one goal of SN is to increase operating profit. The budgeted increase in circulation would enable SN to charge higher advertising rates in later months of 2014 if those budgeted gains actually occur. The actual price paid in May 2014 was the budgeted €0.50 per newspaper.

1. Distinguish between planning and control at SN, giving an example of each.

2. Prepare a newspaper revenue performance report for SN for May 2014 showing the actual results, budgeted amounts and the variance.

3. Give two types of action Saunier might take based on feedback on the May 2014 circulation revenue.

In April 2014 B rang re Saunier editor of The Sporting News

 

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