Final answer:
A manager of a profit center is responsible for both generating revenues and controlling costs to ensure profitability. They should continue the business if it is profitable, as in the example where the center has a gross profit of $5,000 from $20,000 in revenues and $15,000 in variable costs.
Step-by-step explanation:
The question pertains to the responsibilities of a manager in charge of a profit center. The best description for such a manager is D) the manager is responsible for generating revenues and controlling costs. This is because a profit center is a part of an organization that directly adds to its profit, which requires not only the generation of revenues but also the careful control of costs to ensure profitability.
For instance, if a center earns revenues of $20,000, and the variable costs are $15,000, it suggests that the center has a gross profit of $5,000. The manager must strategize to maintain or increase the revenue while managing or reducing costs where possible to maximize profit. Therefore, the manager has a dual role that affects both sides of the profit equation, and if they manage successfully, the center should indeed continue in business.