The Deluxe Division, a profit center of Riley Manufacturing Company, reported the following data for the first quarter of 2013:

Sales $9,000,000

Variable costs 6,300,000

Controllable direct fixed costs 1,200,000

Noncontrollable direct fixed costs 530,000

Indirect fixed costs 300,000

Instructions

(a) Prepare a performance report for the manager of the Deluxe Division.

(b) What is the best measure of the manager's performance? Why?

(c) How would the responsibility report differ if the division was an investment center?