* Data Table - x A B D E N 1 Speed Sports Manufacturing Company-Team Sports Subunit Monthly Performance Report 3 For the Month Variance 4 Actual Budgeted Variance* Percentage* 5 Sales $ 709,800 $ 650,000 6 Less: Variable expenses 419,250 406,250 7 Contribution margin $ 290,550 $ 243,750 8 Less: Direct fixed expenses 13,050 12,500 9 Segment margin $ 277,500 $ 231,250 10 Less: Common fixed expenses 44,250 31,250 11 Operating income $ 233,250 $ 200,000 "Be sure to indicate whether each variance is favorable (F) or unfavorable (U). One subunit of Speed 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 this subunit (round to three decimal places). (Enter a variance for each account and select whether the variance is unfavorable (U) or favorable (F). Enter the results as positive numbers. Enter the variance percents as a percentage to three decimal places, "XX.XXX%".) Speed Sports Company-Team Sports Subunit Monthly Performance Report For the Month Variance Product Actual Variance Percentage Sales $ 709,800 419,250 Budgeted $ 650,000 406,250 % % Less: Variable expenses Contribution margin $ $ % 290,550 13,050 243,750 12,500 Less: Direct fixed expenses % $ $ % Segment margin Less: Common fixed expenses 277,500 44,250 231,250 31,250 % $ 233,250 200,000 Operating income % Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes therefore this subunit must be Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $13,000 and exceeding 10% (both criteria must be met)? (If an input field is not used in the table, leave the input field empty; do not select a label.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate Favorable variances Management needs to evaluate to determine the root cause of the variance. Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variances The flexible budget variance is due to Requirement 6. Do you think management will place equal weight on each of the $13,000 variances? Explain