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Dinkle and Frizell

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The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic
dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two
separate investment centers: Preventive Services and Orthodontic Services. Each of them
is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic
Services. Each month, they prepare an income statement for the two centers to evaluate
performance and make decisions about how to improve the operational efficiency and
profitability of the clinic.

Recently, they have been concerned about the profitability of the Preventive Services
operations. For several months, it has been reporting a loss. The responsibility report for
the month of May 2014 is shown on page 478.

In addition, the owners know that the investment in operating assets at the beginning
of the month was $82,400, and it was $77,600 at the end of the month. They have asked for
your assistance in evaluating their current performance reporting system.

Prepare a responsibility report for an investment center as illustrated in the chapter.

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