Unit 10.1 Practice Exercise Classify each of the following organizational units as a cost center, a profit center, or an investment center. Explain the reason behind your decision. a. Luxury Leather Products' luggage division-The luggage division is one of Luxury Leather Products' two divisions. It operates independently, and all business decisions are made locally in Plano, Texas b. The Modern Dance Department of Mitchell International University-The Modern Dance department is housed in the School of Fine Arts. Besides the courses it offers to its own dance majors, it offers several service courses through the Physical Education Department. Students pay a flat tuition charge to the university, regardless of the number of courses taken or the department that teaches the courses. c. Miles, Miles and Miles, LLP business consulting practice- This large public accounting firm includes auditing, tax, and business consulting practices. Johnson Miles is the partner in charge of the business consulting practice. As the lead partner, Johnson makes all hiring decisions and is responsible for selling consulting services to clients. Partners' compensation is based on the profits generated by their groups. Unit 10.1 Practice Exercise Classify each of the following organizational units as a cost center, a profit center, or an investment center. Explain the reason behind your decision. a. Luxury Leather Products' luggage division-The luggage division is one of Luxury Leather Products' two divisions. It operates independently, and all business decisions are made locally in Plano, Texas b. The Modern Dance Department of Mitchell International University-The Modern Dance department is housed in the School of Fine Arts. Besides the courses it offers to its own dance majors, it offers several service courses through the Physical Education Department. Students pay a flat tuition charge to the university, regardless of the number of courses taken or the department that teaches the courses. c. Miles, Miles and Miles, LLP business consulting practice- This large public accounting firm includes auditing, tax, and business consulting practices. Johnson Miles is the partner in charge of the business consulting practice. As the lead partner, Johnson makes all hiring decisions and is responsible for selling consulting services to clients. Partners' compensation is based on the profits generated by their groups