accounting for manager assignment 495152

Assignment 04 Accounting for Managers Directions: Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar.  Sources must be cited in APA format.  Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the “Assignment Format” page for specific format requirements. Return on Investment and Residual Income Portia Carter is the president of a company that owns six multiplex movie theaters. Carter has delegated decision-making authority to the theater managers for all decisions except those relating to capital expenditures and film selection. The theater managers’ compensation depends on the profitability of their theaters. Max Burgman, the manager of the Park Theater, had the following master budget and actual results for the month. ?Master?Actual???Budget?Results??Tickets sold?120,000?480,000???Revenue–tickets?$ 840,000?$ 880,000???Revenue–concessions?480,000?330,000??Total revenue?$1,320,000?$1,210,000??Controllable variable costs?????Concessions?120,000?99,000???Direct labor?420,000?330,000???Variable overhead?540,000?550,000??Contribution margin?$ 240,000?$ 231,000??Controllable fixed costs?????Rent?55,000?55,000???Other administrative expenses?45,000?50,000??Theater operating income?$ 140,000?$ 126,000?? 1. Assuming that the theaters are profit centers, prepare a performance report for the Park Theater using the chart below. Include a flexible budget. Determine the variances between actual results, the flexible budget, and the master budget. (25 points) ?Actual??Flexible??Master???Results?Variance?Budget?Variance?Budget??Tickets sold?110,000?????( )?120,000???Revenue–tickets?$ 880,000??( )???( )?$ 840,000???Revenue–concessions?330,000??( )???( )?480,000??Total revenue?$1,210,000?????( )?$1,320,000??Controllable variable costs??????????Concessions?99,000??( )???( )?120,000???Direct labor?330,000??( )???( …