Monogram Wall is located in the hearth of Ontario and specializes in customized metal signs that are perfect for home decorations, housewarming or wedding gifts, corporate logos and many more. Currently, the company has two manufacturing plants. Each plant's manager has the authority to make investments as needed and is evaluated based largely on ROI. Monogram Wall's Vaughan plant reported the following results for the past year:

Sales	$850,000
Variable costs	612,000
Controllable fixed costs	206,500
Average operating assets	350,000

Instructions

(a) Assume that the manager of the Vaughan plant is able to reduce both variable and controllable fixed costs by 15% without any change in sales or operating assets. Compute the base-line and the adjusted ROIs. What should the manager do? (8 marks)

(b) Consider the balanced scorecard. Explain what the purpose of the customer perspective is. Provide an example. (3 marks)

(c) Explain what cost center is. (3 marks)