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 2017 is shown below Actual Difference from Budget Service revenue $40,000 $1,000 Favorable Variable costs Filling materials 5,000 100 Unfavorable Novocain 3,900 100 Unfavorable Supplies 1,900 350 Favorable Dental assistant wages 2,500 0 Neither Favorable nor Unfavorable Utilities 500 110 Unfavorable Total variable costs 13,800 40 Favorable Fixed costs Allocated portion of receptionists salary 3,000 200 Unfavorable Dentist salary 9,800 400 Unfavorable Equipment depreciation 6,000 0 Neither Favorable nor Unfavorable Allocated portion of building depreciation 15,000 1,000 Unfavorable Total fixed costs 33,800 1,600 Unfavorable Operating income (loss) $(7,600 ) $560 Unfavorable In addition, the owners know that the investment in operating assets at the beginning of the month was $82,400, and it was $77,600 at the end of the month They have asked for your assistance in evaluating their current performance reporting system 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

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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

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 2017 is shown below.

	Actual		Difference from Budget
Service revenue	$40,000		$1,000	Favorable
Variable costs:
Filling materials	5,000		100	Unfavorable
Novocain	3,900		100	Unfavorable
Supplies	1,900		350	Favorable
Dental assistant wages	2,500		0	Neither Favorable nor Unfavorable
Utilities	500		110	Unfavorable
Total variable costs	13,800		40	Favorable
Fixed costs:
Allocated portion of receptionists salary	3,000		200	Unfavorable
Dentist salary	9,800		400	Unfavorable
Equipment depreciation	6,000		0	Neither Favorable nor Unfavorable
Allocated portion of building depreciation	15,000		1,000	Unfavorable
Total fixed costs	33,800		1,600	Unfavorable
Operating income (loss)	$(7,600	)	$560	Unfavorable

In addition, the owners know that the investment in operating assets at the beginning of the month was $82,400, and it was $77,600 at the end of the month. They have asked for your assistance in evaluating their current performance reporting system. 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