Darius Taylor, manager of the Industrial Products Division, was preparing for his annual performance evaluation. Though Darius has been successful in generating sales growth and controlling manufacturing costs, he has not achieved his income target for the year. Financial information for his division is as follows:

\section*{Required}
A. What type of responsibility center does Darius manage?
B. Identify the appropriate measures for the type of responsibility center identified in requirement (A). Explain your reasoning.
C. Prepare a revised income statement that more accurately reflects Darius' division performance. If you were Darius, what points would you make during your performance evaluation? Explain.

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Industrial Products Division Statement of Income For the Year Ended 2006 Sales Cost of goods sold Gross margin General selling and administrative expenses: Advertising Salaries $18,500,000 10,000,000 $8,500,000 $ 450.000 1,000,000 Depreciation Insurance Other Total Net income 2,000,000 600,000 900,000 4,950,000 $3,550,000