E23-1 John Smith owns a store that sells athletic shoes. Last year, his sales staff sold 10.000 pairs of shoes at an average sale price of $65. Variable expenses were 80% of sales revenue. and the total fixed expense was $100.000. This year the store sold more expensive product lines. Sales were 8.000 pairs at an average price of $90. The variable expense percentage and the total fixed expense were the same both years. Smith evaluates the store manager by com- paring this year's income with last year's income. Prepare a performance report for this year, similar to Exhibit 23-3. How would you improve Smith's performance evaluation system to better analyze this year's results?