The accountant for a subunit of Speed Sports Company went on vacation before completing the subunit€™s monthly performance report. This is as far as she got:

Requirements
1. Complete the performance evaluation report for this subunit.
2. Based on the data presented, what type of responsibility centre is this subunit?
3. Which items should be investigated if part of management€™s decision criteria is to investigate all variances exceeding $16,000? Interpret your results. (What could cause these variances? What impact might these variances have on company inventory levels and operations?)

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Flexible Budget Flexible Volume (Master) Sales Static Speed- Subunit X Revenue by Product Downhill Actual Variance Budgt aiance Budget $ 324,000 Model RI Model RII $19,000 (F) 301,000 145,000 152,000 $162,000 Cross-Country Model EXI 289,000 $3,000 (U) 292,000 308,000 248,000 20,500 (U) 268,500 Snowboard Model LXI 42.3,000 4,000 (F) $1,443,000 401,000 $1,423,500 Total