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 the 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:

Budgeted amounts for July were as follows:

Requirements
1. Prepare a report for July that shows the performance of the Winnipeg store, the Manitoba region, and the company as a whole. Follow the format of Exhibit 9-21.
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.

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Winnipeg Manitoba Companywide $148,900 $1,647000 $4,200,000 Expenses Regional manager/ headquarters office Cost of materials Salary expense Depreciation expense... 81,100 38,300 .7,200 4,000 2,400 133,000 871,900 415,100 91,000 46,200 34,700 1,518,900 15,900 128100 60,000 116,000 1,807,000 1,119,000 435,000 260,000 178,000 3,915,000 $ 285,000 Rent expense Total expenses Operating income Winnipeg $162,400 $1,769,700 Manitoba Companywide $4,450,000 Revenue Expenses Region manager/ headquarters office Cost of materials Salary expense 963,400 442,000 87,800 54,400 32,300 1,645,500 s 22,000 124,200 86,400 38,800 7,200 4,400 3,600 140,400 65,600 118,000 1,972,000 1,095,000 449,000 271,000 174,000 4,079,000 371,000 Rent expense Total expenses. Operating inco