SECTION A QUESTION 1 Centera Inc. makes construction equipment. Flooring Division is an investment centre and is one division in Centera. Actual and master budget data for the division for the year ended Dec 31, 2021 are as follows: Actual Master budget Sales in units 9,000 10,000 Sales $290,000 $300,000 Variable cost of goods sold 140,000 130,000 Variable selling and administrative expenses 30,000 28,000 Controllable fixed cost of goods sold 37,000 38,000 Controllable fixed selling and administrative expenses 24.000 24,000 Average operating assets for 2021 for the Flooring division were $500,000, which was also the budgeted amount Required (a) (2 marks) Provide an example of a controllable fixed cost of goods and an example of uncontrollable fixed selling and administrative expenses. (b) (8 marks) Using the concepts we learned in class for responsibility reports, prepare and an appropriate responsibility report for the Flooring division. (c) (2 marks) Comment on the manager's performance in controlling revenues and costs. (d) (3 marks) Calculate the division's controllable profit margin and the asset turnover, and show that they are related to the return on investment for 2021