The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle 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 2020 is shown below.

Prepare a responsibility report for an investment center as illustrated in the chapter. (Round ROI to 1 decimal place, e.g. 1.5.) DINKLE AND FRIZELL DENTAL CLINIC Preventive Services Responsibility Report For the Month Ended May 31, 2017 Difference Favorable F Unfavorable U Neither Favorable nor Unfavorable N Budget Actual $ % % Return on investment 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 2020 is shown below. Difference from Budget Actual $1,120 Favorable $39,620 Service revenue Variable costs: Filling materials 5,120 140 Unfavorable Novocain 80 Unfavorable 3,960 Supplies 440 Favorable 1,860 Dental assistant wages 2,410 -0- Neither Favorable nor Unfavorable Utilities 490 110 Unfavorable Total variable costs 13,840 110 Favorable Fixed costs: Allocated portion of receptionist's salary 190 Unfavorable 2,960 Dentist salary 10,460 490 Unfavorable Equipment depreciation 6,090 -0- Neither Favorable nor Unfavorable Allocated portion of building depreciation 15,000 1,070 Unfavorable Total fixed costs 1,750 Unfavorable 34,510 $(8,730) $520 Unfavorable Operating income (loss) In addition, the owners know that the investment in operating assets at the beginning of the month was $84,210, and it was $73,850 at the end of the month. They have asked for your assistance in evaluating their current performance reporting system