Data table Flexible Budget % Variance (F Variance (F or U) or U) Subunit X Actual Results Flexible Budget Net Sales Revenue $ 479,000 $ 263,000 451,000 252,000 Variable Expenses Contribution Margin 216,000 37,000 199,000 30,000 Traceable Fixed Expenses $ 179,000 $ Divisional Segment Margin 169,000 Print Done One subunit of Freeway Sports Company had the following financial results last month: Click the icon to view the financial results.) Read the requirements. Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account as a positive number and select whether the variance is favorable or unfavorable. Enter the variance percent as a percentage rounded to two decimal places, X.XX%.) % Variance Subunit X Actual Flexible Results Budget $ 479,000 $ 451,000 263,000 252,000 Flexible Budget Variance (F or U) 28000 F Net Sales Revenue (F or U) 6.21 % 4.37 % F 11000 U U Variable Expenses Contribution Margin Traceable Fixed Expenses 17000 F 8.54 % F $ 216,000 $ 37,000 199,000 30,000 7000 U 23.33 % U $ 169,000 179,000 $ 10000 Divisional Segment Margin 5.92 F F % Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? This performance report includes both revenue and cost data ; therefore, this subunit must be a profit center. Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $4,000 and exceeding 10% (both criteria must be met)? Management should investigate the following: (If an input field is not used in the table, leave the input field empty.) Management should investigate the following: (If an input field is not used in the table, leave the input field empty.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate favorable as well as unfavorable variances Favorable expense variances Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variance is due to Requirement 6. Will management place equal weight on each of the variances exceeding $4,000? Explain. Management will because Requirement 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag Requirement 6. Will management place equal weight on each of the variances exceeding $4,000? Explain. esn argi por rofit Management will because Requirement 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. The performance report addresses the perspective of the balanced scorecard. performance measures tend to be indicators. They typically Requirement 8. List one key performance indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed stiga by the indicators you list. Complete the following table to identify one key performance indicator for the three other balanced Scorecard perspectives. keel Balanced scorecard Key performance perspective indicator