Daniel 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 \(\$ 120,000\). 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.

Prepare a performance report for this year, similar to Exhibit 22-4. How would you improve Garcia's performance evaluation system to better analyze this year's results? 

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EXHIBIT 22-4 Summary Performance Report Sales revenue Total expenses Operating income Actual $550 90 $460 Income Variance Budget (Actual Budget) $600 $(50) 80 (10) $520 $(60)