Performance evaluation, profit center. Lori White is the chief executive of a division of Visions, Inc. Lori’s division makes high-quality frames that sell for premium prices. For the most recent...

Performance evaluation, profit center. Lori White is the chief executive of a division of Visions, Inc. Lori’s division makes high-quality frames that sell for premium prices. For the most recent budget year, her division expected to sell 80,000 frames and receive $9.6 million. Actual sales and revenues were 100,000 frames and $11 million, respectively. Lori delegates all marketing and sales related decisions (including pricing) to her marketing manager.

Required:

a. Should Lori be pleased with the revenue performance?

b. Suppose instead that the actual sales were 70,000 frames for revenues of $9,100,000. Should Lori be upset with the revenue performance? List some of the issues that Lori should look into when analyzing this performance.