1. Midwest Division operates as a profit center. It reports the following for the year.

Budgeted

Actual

Sales

$1,500,000

$1,700,000

Variable costs

700,000

800,000

Controllable fixed costs

400,000

400,000

Noncontrollable fixed costs

200,000

200,000

Prepare a responsibility report for the Midwest Division for December 31, 2010.