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

Requirements
1. Complete the performance evaluation report for this subunit (round to three decimal places).
2. Based on the data presented, what type of responsibility center is this subunit?
3. Which items should be investigated if part of the management's decision criteria is to investigate all variances equal to or exceeding $ 12,000 and exceeding 12% ( 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. Do you think management will place equal weight on each of the $ 12,000 variances? Explain.
7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or lag indicator? Explain.
8. Give one key performance indicator for the other three balanced scorecard perspectives. Indicate which perspective is being addressed by the indicator you list. Are they lead or lag indicators? Explain.

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Seasons Sports Manufacturing Company Team Sports Subunit Monthly Performance Report For the Month 5 Product Actual Budgeted Variance Variance Percentage 6 Sales 7 Less: Variable expenses 8 Contribution margin 9 Less: Direct fixed expenses 10 Segment margi 11 Less: Common fixed expenses 12 Operating income 13 545,500 387,0003 10,380 148,120 5 52,000 96,120 500,000 375,000 125,000 10,000 115,000 40,000 75,000