substantial response to following: The text discusses weaknesses in the June production performance report and the potential behavioral implications of Sara's remark to Ken. The report's weaknesses include the lack of a flexible budget, missing variance analysis, and unclear overhead and fixed costs allocation. Sara's comment about Ken's division can have negative behavioral implications, such as demoralization, avoidance of responsibility, and strained relationships. To address the weaknesses, a more informative report should be created, including a flexible budget, variance analysis, and clear overhead allocation. This will help Ken understand the areas that need improvement and allow him to take corrective action based on specific data. The changes in the report will positively affect Ken's behavior as he will have a clearer understanding of the variances and can focus on specific areas for improvement. The report will also enable better collaboration between Ken and Sara. The original performance report may negatively impact the company, causing misleading conclusions, poor decision-making, and reduced managerial accountability. Therefore, the company must provide detailed, flexible, and informative reports for meaningful evaluation and informed decision-making