Winnie's World operates a chain of pet stores in the Prairies. The manager of each store reports to the regional manager, who, in turn, reports to headquarters in Regina. The actual income statements for the Winnipeg store, the Manitoba region (including the Winnipeg store), and the company as a whole (including the Manitoba region) for July are as follows: (Click the icon to view the actual income statements.) (Click the icon to view the budgeted income statements.) Requirements 1. Prepare a report for July that shows the performance of the Winnipeg store, the Manitoba region, and the company as a whole. 2. As the Manitoba region manager, would you investigate the Winnipeg store on the basis of this report? Why or why not? 3. Briefly discuss the benefits of budgeting. Base your discussion on Winnie's World's performance report. Requirement 1. Prepare a report that shows the performance of the Winnipeg store, the Manitoba region and the company as a whole. We will begin with the company as a whole. (Use parentheses or a minus sign when entering the headquarters' expense and any unfavourable variances.) Winnie's World Responsibility Accounting Performance Report July Companywide Variance Favourable Actual Budget (Unfavourable) Operating Income of Regions and Headquarters' Office Expense Headquarters' office expense Manitoba Stores in other regions Operating income Actual income statements Winnipeg Manitoba Companywide 148,900 $ 1,647,000 $ 4,200,000 $ $ $ 81,100 Revenue Expenses: Region manager/headquarters office Cost of materials Salary expense Depreciation expense Utilities expense Rent expense Total expenses 38,300 60,000 $ 871,900 415,100 91,000 46,200 34,700 116,000 1,807,000 1,119,000 435,000 260,000 178,000 7,200 4,000 2,400 133,000 1,518,900 3,915,000 15,900 $ 128,100 $ 285,000 Operating income Budgeted amounts for July were as follows: $ Winnipeg Manitoba Companywide $ Revenue 162,400 $ 1,769,700 $ 4,450,000 Expenses: Region manager/headquarters office $- 65,600 $ 118,000 Cost of materials 86,400 963,400 1,972,000 Salary expense 38,800 442,000 1,095,000 Depreciation expense 7,200 87,800 449,000 Utilities expense 4,400 54,400 271,000 Rent expense 3,600 32,300 174,000 Total expenses 140,400 1,645,500 4,079,000 22,000 $ 124,200 $ 371,000 Operating income