(Revenue center performance) Mark Schwartz manages the sales department at the Boston Lighting Company. Mark is evaluated based on his ability to meet bud¬ geted revenues. For June 1998, Mark’s revenue budget was as follows:

a. Compute the revenue price variance.

b. Compute the revenue mix variance.

c. Compute the revenue volume variance.

d. Based on your answers to parts a through

c, evaluate the performance of Mr. Schwartz.

e. If Mr. Schwartz is to be held accountable for meeting the revenue budget, why might it be advisable to also give him the authority to set the salesperson salary and commission structure?

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Floor lamps Hanging lamps Ceiling fixtures PRICE PER UNIT UNIT SALES $120 65 1,600 2,150 80 4,200 The actual sales generated by Mr. Schwartz's sales department in June were as follows: Floor lamps Hanging lamps Ceiling fixtures TOTAL SALES PRICE PER UNIT IN DOLLARS $115 70 75 $195,500 141,400 311,250