Please answer the question attached

Amfish Industries budgets, performance evaluation, variances, and strategy alignment Amfish Industries' strategic plan is to be the largest lowcost provider of premium pet products in North America. Its current plans focus on quality and cost control in order to gain market share. This will be followed by a slow and steady expansion plan. Amfish is decentralized with business units given autonomy as cost, profit, or investment centres. The business unit Pet Food Production (PFP) is treated as a cost centre. In order to plan and control operations, senior management uses a negotiated budgeting process with the business units. While Danielle Copper, the manager of PFP, has complete control over the production process, her budget is driven by the sales department projections. For 2015, sales are forecast for 10% growth with a corresponding increase in market share. Danielle uses a modelbased approach to create engineered targets for production because PFP is a cost centre. Performance evaluation includes variance analysis flexed to actual units of output. Accordingly, Danielle has prepared the following budget plan for one popular dog food, Powchow. Danielle has created the standard quantities after careful analysis of previous years' data and has planned for an improvement in the efficient use of ingredients through a reduction of waste and spoilage. Danielle evaluated current costs as well as historical cost patterns to develop the standard costs. The standards are considered practical and attainable. Production batch = 100 kilograms (kg) of Powchow Venison 42 kg $ 17.50 $ 735 Chicken 30 kg 8.50 255 Base mix 48 kg 1.00 48 Ingredients 1,038 Conversion costs per 100 kg 1,283 Total production costs $ 2,321 Average cost per kg = $23.21 Budgeted 2015 sales 50,000 kg Inventory on hand (beginning of year) 6,000 kg Other information: The base mix consists of vegetables, minerals, vitamins, and nonnutritional fillers. The plan requires 120 kg of input to produce 100 kg of quality output. Previously the ratio was 1.3:1. Conversion costs consist of all other manufacturing costs. Amfish is unionized and employee schedules are fixed for production between 48,000 and 53,000 units of output in the Powchow division. Danielle has freedom to change the actual mix of ingredients. Danielle is very pleased with the 2015 yearend results. She managed to reduce the average cost per kg during a year of steadily increasing costs. She knows that the sales department is disappointed with actual results as sales are down across all categories. Analysis of the industry shows that the overall volume increased by 20%, with pet owners spending more than ever on their furry family members. However, actual sales of Powchow were only 48,000 kg. Actual costs associated with the production of 51,000 kg of Powchow are provided. All ingredients were used in production (no beginning or ending inventories of ingredients). Venison 18,400 kg $ 18.10 $ 333,040 Chicken 16,700 kg 8.60 143,620 Base mix 28,600 kg 1.20 34,320 Ingredients 510,980 Conversion costs 641,860 Total production costs $ 1,152,840 Average cost = $22.60 per kg Danielle plans to produce more kgs next year in order to make better use of existing capacity in the form of equipment and labour. She notes that she will have better economies of scale. Required a. Evaluate Danielle's performance in as much detail as possible. Your evaluation should include price, mix, and yield analysis for ingredients, as well as a discussion on controllable and uncontrollable factors. This part of your answer will be used as support for part c) of the requirements. b. Why might Danielle have produced more kilograms than were required (given that sales were slower than anticipated)? Does agency theory help clarify her behaviour? Are there ethical issues? c. Assume the role of a compensation consultant. Write a memo to Andrew Michaels, director of human resources. Your memo should include a discussion on the effectiveness of the performance measures used to evaluate Danielle's performance. This discussion should draw on your evaluation from part a) and your observations from part b), and make a recommendation as to whether Danielle has been successful. Your answer should include specific recommendations to improve Amfish's evaluation of the performance of cost centres