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Question 3 of 6 - 1 0 View Policies Current Attempt in Progress The Davis and Miller Dental Clinic provides both preventive and orthodontic dental
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The Davis and Miller Dental Clinic provides both preventive and orthodontic dental services. The two owners, David Davis and Jennifer Miller, operate the clinic as two separate investment centres: preventive services and orthodontic services. Each owner is in charge of one centre: David for preventive services and Jennifer for orthodontic services. Each month, they prepare an income statement on the two centres to evaluate performance and make decisions about how to improve the clinic's operational efficiency and profitability.
Recently, they have been concerned about the profitability of the preventive services operations. For several months, the centre has been reporting a loss. In addition, the owners know that the investment in operating assets at the beginning of the month was $ and it was $ at the end of the month. They have asked for you to evaluate their current performance reporting system. Shown below is the responsibility report for the month of May :
tableActual,,tableDifferencefrom BudgetService revenue,$$tableFavourabloSUPPOVariable costs,,Filling materials,UnfavourabletableVariable costsFilling materials,UnfavourableNovocaineUnfavourableSuppliesFavourableDental assistant wages,Neither Favourable norUtilitiesUnfavourableTotal variable costs,UnfavourableFixed costsAllocated portion of receptionist's salary,UnfavourableDentist salary,UnfavourableEquipment depreciation,Neither Favourable norAllocated portion of building depreciation,UnfavourableTotal fixed costs,Unfavou sUPPORTperating income loss$$Unfavourablea
Prepare a responsibility report for an investment centre as illustrated in the chapter. Round ROI to decimal places, eg
DAVIS AND MILLER DENTAL CLINIC
Preventive Services
Responsibility Report
Budget
Actual
$
$
$
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