Gonzalez owns a chain of travel goods stores, Gonzalez Travel Goods. Last year, his sales staff sold 15,000 suitcases at an average sale price of $170. Variable expenses were 80% of sales revenue, and the total fixed expense was $140,000. This year, the chain sold more expensive product lines. Sales were 10,000 suitcases at an average price of $270. The variable expense percentage and the total fixed expenses were the same both years. Gonzalez 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 Gonzalez'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.)

Gonzalez 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