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Question: Performance Reports: below is a performance report that compares budgeted and actual profit in the sporting goods department of Maxwell's department store for the month of December. Maxwell's department store Sporting Goods Performance Report December 2008 Budget Actual Difference Sales $700, 000 $775,000 $75,000 Less: Cost of merchandise $350,000 $430,000 $80,000 Salaries of sales staff $70,000 $78,000 $8,000 Controllable profit $280,000 $267,000 $13000
Required: A. Evaluate the department in terms of its increases in sales and expenses.
Do you believe it would be useful to investigate either or both of the increase in expenses?
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