Brandt Heating and Cooling is a reputed HVAC (heating, ventilation, and air-conditioning) contractor. Tim Brandt has a reputation for doing quality work and for treating the customer €œright.€ Brandt serves both homeowners and building contractors. The following table presents Brandt€™s income statement for the most recent year:

Tim believes that while contractors are important from a volume perspective, homeowners are more profitable. Unlike homeowners, building contractors €œknow the business€ and negotiate aggressively.

Required:
For each of the following three decisions, classify whether each item on Brandt€™s income statement is controllable and/or relevant. Explain why an item may be controllable/relevant for some decisions but not for other decisions.
1. Whether to give a $50 discount to a regular homeowner customer who complained about the technician showing up late.
2. Whether to send a technician to obtain training in high-voltage work.
3. Whether to replace an aging truck with a newermodel.

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ltem Revenues from homeowners Revenues from contractors Direct costs Amount Detail 275,000 525,000 500,000 Matels used in obs plus the cost of hourly labor Rental cost Trucks and other equipiment 30,000 Fore office building 65,000 Brandt has a fleet of trucks used by techni cians to travel to job sites. This amount also includes costs for operating and maintain- ing trucks and other equipment For the part-time accountant, receptionist Administrative costs 85,000 _and sup erviSO Profit 120,000