David Perze owns a chain of travel goods stores, Perez

Travel Goods. Last year, his sales staff sold 10,000

suitcases at an average sale price of $140.

Variable expenses were 80%

of sales revenue, and the total fixed expense was $110,000.

This year, the chain sold more expensive product lines. Sales were 9,000

suitcases at an average price of $190.

The variable expense percentage and the total fixed expenses were the same both years.

Perez evaluates the chain manager by comparing this year's income with last year's income.

Prepare a performance report for this year. How would you improve

Perez's performance evaluation system to better analyze this year's results?

Begin by preparing a performance report. (Complete all answer boxes. Enter a "0" for zero amounts.)

	Save Accounting Table...			+
	Copy to Clipboard...			+

Perez Travel Goods
Income Statement Performance Report
	This Year	Last Year	Variance
Number of suitcases sold
Sales Revenue
Variable Expenses
Contribution Margin
Fixed Expenses
Operating Income