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MOREHEAD TECHNOLOGIES
ANALYTICAL PROCEDURES
Audited Balance Preliminary Balance Difference in expected
Account 10/31/2015 10/31/2016 Expected Value
recorded amounts
Reasoning for Expected Value
Sales 51,316,234 57,474,182
Executive salaries 546,940 615,970 563,348 -9.34% Executives received 3% raise November 1, 2015.
Factory hourly payroll 10,038,877 11,476,319 11,167,247 -2.77%
Factory workers received 3% raise November 1, 2015, and
volume increaed 8%
Factory supervisors' salaries 785,825 810,588 809,400 -0.15% Factory supervisors received 3% raise November 1, 2015.
Office salaries 1,990,296 2,055,302 2,050,005 -0.26% Office personnel received 3% raise November 1, 2015.
Sales commissions 2,018,149 2,367,962 2,249,072 -5.29%
Increase in expected commissions is 75% of increase in sales
(only 75% of sales earn commission ) x 5% commission rate
