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 $10,000 and exceeding 14% (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 $10,000 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 indicators you list. Are they lead or lag indicators? Explain.

 

Winter Sports Manufacturing Company-Team Sports Subunit Monthly Performance Report For the Month Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Segment margin Less: Common fixed expenses Operating income Variance Actual Budgeted Variance* Percentage* $ 486,000 $ 450,000 260,000 250,000 $ 226,000 $200,000 52,000 $ 174,000 $ 35,000 $ 139,000 $ 50,000 150,000 25,000 125,000