Responsibility accounting. Jose’s Cantina is a chain of 20 fast-food restaurants. Gordon Martinez started the firm 10 years ago to provide affordable, fast, good quality Mexican cuisine. He locates...

Responsibility accounting. Jose’s Cantina is a chain of 20 fast-food restaurants. Gordon Martinez started the firm 10 years ago to provide affordable, fast, good quality Mexican cuisine. He locates branches near college campuses and areas with large populations of young adults. To oversee daily operations, he has hired managers for each branch and city. However, Gordon keeps a tight rein on operations. He personally approves all capital expenditures, menu changes, and so on. Branches get deliveries each day and offer a fixed menu of items at firm prices.
Required:

a. Classify the branches as being profit or cost centers. Justify.

b. Based on your answer to (a) above, briefly describe how you will evaluate the performance of each branch.