One subunit of Boxing Sports Company had the following financial results last month:

Requirements 

1. Complete the performance evaluation report for this subunit (round to two decimal places). 

2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit?

3. Which items should be investigated if part of management’s decision criteria is to investigate all variances equal to or exceeding $ 5,000 and exceeding 10% ( both criteria must be met)? 

4. Should only unfavorable variances be investigated? Explain. 

5. Is it possible that the variances are due to a higher- than- expected sales volume? Explain. 

6. Will management place equal weight on each of the variances exceeding $ 5,000? Explain. 

7. Which balanced scorecard perspective is being addressed through this ­performance report? In your opinion, is this performance report a lead or a lag indicator? Explain. 

8. List one key performance indicator for the three other balanced scorecard ­perspectives. Make sure to indicate which perspective is being addressed by the indicators you list.

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Flexible Budget % Variance Subunit X Sales Variable Expenses Contribution Margin Traceable Fixed Expenses Divisional Segment Margin Actual Results Flexible Budget Vance (F or U) (For U) 5 479,000 260,000 219,000 94,000 125,000 453,000 250,000 203,000 85,000 $ 118,000