2. Demarcus and his brother of the organization is being evaluated based on the following financial results and variances for last month. From the four choices provided, which type of responsibility center do you think this performance evaluation approach reflects? Explain why Demarcus subunit Actual Direct materials $30,000 Direct labor 15,000 Indirect labor 25,000 Utilities 12,000 Depreciation 25,000 Repairs and Maintenance 4,000 Total $111,000 Flexible Budget Flexible Variance Budget (U or F) $28,000 $2,000 u 14,000 1,000 U 22,000 3,000 UI 10,000 2,000 u 25,000 % of Variance (U or F) 7.14% U 7.14% U 13.64% U 20.0% u 5,000 $104,000 1,000 $7,000 u 20.00% 6.73% U A. Revenue center B. Profit center C. Investment center D. Cost center