Greene Enterprises prepares monthly departmental reports in an effort to control its operating costs. Each department has a manager to whom the report is addressed and who is held responsible for the operating results in his or her department. The report made to Department D for October follows:

Required:
Prepare a report that will be of more value in analyzing and appraising the performance of the manager of Department D for October. Comment on the operating results.

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Actual Sales Cost of goods sold Gross margin Direct operating expenses Contribution to indirect expense Budgeted $56,000 39,200 16,800 16,720 S 80 $63,000 37.800 25,200 18,000 S 7,200