To determine how each profit center is performing,management would analyze the:

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To determine how each profit center is performing, management would analyze the gross profit for each profit center. Gross profit is the difference between revenue and cost of goods sold, which provides insight into the profitability of each profit center. The income tax rate, indirect expenses, and other expenses may also be considered, but they are not the primary factors in determining the performance of each profit center.

To Determine How Each Profit Center Is Performing,management Would Analyze