Darrell Perez owns a chain of travel goods stores, Perez Travel Goods. Last year, his sales staff sold 10,000 suitcases at an average sale price of $160. Variable expenses were 60% of sales revenue, and the total fixed expense was $170,000. This year, the chain sold more expensive product lines. Sales were

9,000 suitcases at an average price of $210. The variable expense percentage and the total fixed expenses were the same both years. Perez evaluates the chain manager by comparing this year's income with last year's income.

Prepare a performance report for this year. How would you improve Perez's performance evaluation system to better analyze this year's results?

Begin by preparing a performance report.

Perez Travel Goods
Income Statement Performance Report
	This Year	Last Year	Variance
Number of suitcases sold
Sales Revenue
Variable Expenses
Contribution Margin
Fixed Expenses
Operating Income

How would you improve Perez's performance evaluation system to better analyze this year's results?

A better system would compare ___________

▼

last year's actual results

last year's budget

next year's budget

this year's actual results

with _________________

▼ _______________

last year's actual results

last year's budget

next year's budget

this year's actual results

this year's budget

,which considers all factors that affect this year's operations.