Problem - The Consumer Division, a profit center of X Company, reported the following data for the year of 2017:
Actual Budget
Sales $7,000,000 $7,300,000
Variable costs 4,200,000 4,150,000
Controllable fixed costs 800,000 820,000
Non-controllable fixed costs 530,000 570,000
Average operating assets 2,350,000 2,400,000
Instructions -
[a] Prepare a responsibility report for the manager of the Consumer Division.
[b] What is the best measure of the manager's performance? Why?
[c] How would the responsibility report differ if the division was an investment center?
Use computations to illustrate yvour answer.
Need help Preparing a responsibility report. Need all computations to be shown.