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Question 5 of 5 View Policies Current Attempt in Progress The Blue Spruce and Frizell Dental Clinic provides both preventive and orthodontic dental services.

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Question 5 of 5 View Policies Current Attempt in Progress The Blue Spruce and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Blue Spruce and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic Services. Each month, they prepare an income statement for the two centers to evaluate performance and make decisions about how to improve the operational efficiency and profitability of the clinic Recently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. The responsibility report for the month of May 2022 is shown here. Actual Difference from Budget $41,350 $1,190 Favorable Service revenue Variable costs Filling materials 4.910 140 Unfavorable Novocain 4,050 50 Unfavorable Supplies 1.870 400 Favorable Dental assistant wages 2,520 -0- Neither Favorable nor Unfavorable Utilities 470 80 Unfavorable Total variable costs 13.820 130 Favorable Fixed costs Allocated portion of receptionist's salary 2.960 340 Unfavorable Dentist salary 9,610 540 Unfavorable Equipment depreciation 5,920 -0- Neither Favorable nor Unfavorable Allocated portion of building depreciation 15,140 1.080 Unfavorable Total fixed costs 33,630 1.960 Unfavorable Operating income (loss) $(6,100) $640 Unfavorable In addition, the owners know that the investment in operating assets at the beginning of the month was $84,320, and it was $75,000 at the end of the month. They have asked for your assistance in evaluating their current performance reporting system. Prepare an investment center responsibility report for the Preventative Services segment for May 2022. (Round ROI to 2 decimal places, eg. 1.51%) BLUE SPRUCE AND FRIZELL DENTAL CLINIC Droventive Sonicoc

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