Johnson & Johnson evaluates the performance of its responsibility centers. In May 2042, the following data is provided:

• Revenue Center A: Revenue $60,000,000, Costs $35,000,000
• Cost Center B: Costs $25,000,000, Allocated Costs $7,000,000

Requirements:

• Calculate the performance of each responsibility center.
• Prepare a performance report for each center.
• Recommend actions to improve performance.
• Discuss the role of responsibility accounting in performance management.