Diego Garcia owns a chain of travel goods stores. Last year, his sales staff sold 10,000 suitcases at an average sale price of \($150\). Variable expenses were 80% of sales revenue, and the total fixed expense was \($110,000\). This year, the chain sold more expensive product lines. Sales were 8,000 suitcases at an average price of \($200\). The variable expense percentage and the total fixed expense were the same both years. Garcia evaluates the chain manager by comparing this year’s income with last year’s income.

Requirement 

1. Prepare a performance report for this year. How would you improve Garcia’s performance evaluation system to better analyze this year’s results?