The Holiday Division, a profit center of Valina Manufacturing Company, reported the following data for the first quarter of 2016:

Sales $12,000,000

Variable costs 8,400,000

Controllable direct fixed costs 1,650,000

Noncontrollable direct fixed costs 1,060,000

Indirect fixed costs 400,000

Instructions

a. Prepare a performance report for the manager of the Holiday Division.

b. What is the best measure of the managers performance? Why?

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