g The Deluxe Division, a profit center of Riley Manufacturing Company, reported the following data for the first quarter of 2019: Sales $9,000,000 Variable costs 6,300,000 Controllable direct fixed costs 1,200,000 Noncontrollable direct fixed costs 530,000 Indirect fixed costs 300,000 (a) Prepare a performance report for the manager of the Deluxe Division.

 Please find answers in explanation column

Explanation:

To know  the performance of a profit center like  Riley Manufacturing Company, the company will need to know  information  on the controllable margin which shows the excess of contribution margin over the controllable fixed cost  which measures how managers can  control revenues and costs.

Management Performance report for Deluxe Division of Riley Manufacturing Company.

Particulars                                       Amount

Sales                                             $9,000,000

Variable costs                               $ 6,300,000

Contribution margin

(sales - Variable costs )                 $2,700,000

Controllable fixed cost                   $1,200,000

Controllable cost/Margin               $1,500,000

(Contribution  margin -Controllable fixed cost   )

this business is a price setter.

hope this

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