Morra is the new manager of the parking division of a small college; her division is set up as a profit center. Morra has responsibility for control of the costs and for revenues generated by parking fines and decal permit sales. To increase revenues, the parking division has emphasized issuing parking fines for all violations, even when the lot is vacant.

a. Discuss the merits of the parking division set up as a profit center.

b. If you were Morra, would you think that too much emphasis was being placed on generating a profit for the parking division and that perhaps the division should be measured on other performance measures? Be specific in what you would suggest instead (any other metrics, responsibility center changes, or other sources of revenues or means to control costs).