Variable Costing and Performance Reporting

      Blair Manufacturing is organized into divisions along product lines. Its small electrics division has suffered recently from a serious drop in demand. The head of the division has reported that sales for the division have been low enough that the division expects to report an overall loss for the year. But, when the year-end results were finalized, the small electrics division reported a profit in excess of 200,000 dollars. Assuming the role of the head of the small electrics division, you have been invited to the president's office to share your insight on this puzzling circumstance. Prior to the meeting, you need to prepare an analysis to explain the results. In your post: Explain how you would address the inconsistency.