Lanier Company manufactures expensive watch cases sold as souvenirs. Three of its sales departments are Retail Sales, Wholesale Sales, and Outlet Sales. The Retail Sales Department is a profit center. The Wholesale Sales Department is a cost center. Its managers merely take orders from customers who purchase through the companys wholesale catalog. The Outlet Sales Department is an investment center because each manager is given full responsibility for an outlet store location. The manager can hire and discharge employees, purchase, maintain, and sell equipment, and in general is fairly independent of company control. Mary Gammel is a manager in the Retail Sales Department. Stephen Flott manages the Wholesale Sales Department. Jose Gomez manages the Golden Gate Club outlet store in San Francisco. The following are the budget responsibility reports for each of the three departments. Budget Retail Sales Wholesale Sales Outlet Sales Sales $ 750,000 $ 400,000 $ 200,000 Variable costs Cost of goods sold 150,000 100,000 25,000 Advertising 100,000 30,000 5,000 Sales salaries 75,000 15,000 3,000 Printing 10,000 20,000 5,000 Travel 20,000 30,000 2,000 Fixed costs Rent 50,000 30,000 10,000 Insurance 5,000 2,000 1,000 Depreciation 75,000 100,000 40,000 Investment in assets 1,000,000 1,200,000 800,000 Actual Results Retail Sales Wholesale Sales Outlet Sales Sales $ 750,000 $ 400,000 $ 200,000 Variable costs Cost of goods sold 192,000 122,000 26,500 Advertising 100,000 30,000 5,000 Sales salaries 75,000 15,000 3,000 Printing 10,000 20,000 5,000 Travel 14,000 21,000 1,500 Fixed costs Rent 40,000 50,000 12,300 Insurance 5,000 2,000 1,000 Depreciation 80,000 90,000 56,000 Investment in assets 1,000,000 1,200,000 800,000 a) Determine which of the items should be included in the responsibility report for each of the three managers. ( elaborate please) b) Compare the budgeted measures with the actual results. Decide which results should be called to the attention of each manager.( elaborate please)