A profit centre manager claims that the poor performance of her division is entirely due to factors
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A profit centre manager claims that the poor performance of her division is entirely due to factors outside her control. She has submitted the following table along with notes from a market expert, which she believes explains the cause of the poor performance:
After adjusting for the external factors outside the manager’s control, in which category/categories is there evidence of poor performance?
(a) Material cost only
(b) Sales volume and sales price
(c) Sales price and material cost
(d) Sales price only
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