Top Brass Corporation sells decorative vases out of its three stores located around the world. Below is "per store" sales and cost data (all reported in dollars) for March. Form a three-person team. Each team member should assume the role of store manager for one of the following three locations and prepare a "budget v. actual" performance report for that location. Next, combine the individual actual performance reports, assuming that additional common fixed costs are $300,000. Evaluate the actual results of operations, and assess whether closing any location would have improved overall results. In performing the evaluation, assume that traceable fixed costs could be eliminated for any closed location. However, the common fixed costs cannot be avoided. Discuss the importance of accurate budgeting as it relates to planning and performance evaluation.
		Budget		Actual
Houston
Sales		$ 750,000		$ 775,000
Variable expenses		47%		53%
Traceable fixed costs		$ 300,000		$ 380,000
Dubai
Sales		$ 1,200,000		$ 1,350,000
Variable expenses		42%		43%
Traceable fixed costs		$ 575,000		$ 585,000
Beijing
Sales		$ 690,000		$ 660,000
Variable expenses		48%		45%
Traceable fixed costs		$ 240,000		$ 245,000

Performance Report Houston For the Month Ending March 31, 20XX
				Actual		Budget		Variance
Sales
Less: Variable expenses
Contribution margin
Traceable fixed costs
Location margin
Performance Report Dubai For the Month Ending March 31, 20XX
				Actual		Budget		Variance
Sales
Less: Variable expenses
Contribution margin
Traceable fixed costs
Location margin
Performance Report Beijing For the Month Ending March 31, 20XX
				Actual		Budget		Variance
Sales
Less: Variable expenses
Contribution margin
Traceable fixed costs
Location margin
Actual Performance Report All Stores For the Month Ending March 31, 20XX
		Combined		Houston		Dubai		Beijing
Sales
Less: Variable expenses
Contribution margin
Traceable fixed costs
Location margin
Common fixed costs
Stores margin