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Portia Carter is the president of a company that owns six multiplex movie theaters. Carter has delegated decision-making authority to the theater managers for all

Portia Carter is the president of a company that owns six multiplex movie theaters. Carter has delegated decision-making authority to the theater managers for all decisions except those relating to capital expenditures and film selection. The theater managers compensation depends on the profitability of their theaters. Morris Burgman, the manager of the Park Theater, had the following master budget and actual results for the month.

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Master Budget Actual Results 120,000 $840,000 480,000 $1,320,000 $1,210,000 Tickets sold Revenue-tickets Revenue-concessions Total revenue Controllable variable costs Concessions Direct labor Variable overhead Contribution margin Controllable fixed costs Rent Other administrative expenses Theater operating income 110,000 $880,000 330,000 120,000 420,000 540,000 $240,000 99,000 330,000 550,000 231,000 55,000 45,000 $140,000 55,000 50,000 $126,000

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