Question: Help! :) Please. Integrating decentralization and performance evaluation systems One subunit of Racer Sports Company had the following financial results last month: Flexible Budget Variance

Help! :) Please.

Help! :) Please. Integrating decentralization and performance evaluation systems One subunit of

Integrating decentralization and performance evaluation systems One subunit of Racer Sports Company had the following financial results last month: Flexible Budget Variance (F or U) % Variance (For U) Subunit X Net Sales Revenue Variable Expenses Contribution Margin Traceable Fixed Expenses Divisional Segment Margin Flexible Budget 451,000 251,000 200,000 26,000 174,000 Actual Results 476,000 261,000 215,000 40,000 175,000 equirements 1. Complete the performance evaluation report for this subunit (round to two decimal places). Sales $25,000 F 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $8,000 and exceeding 10% (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. Will management place equal weight on each of the variances exceeding $8,000? Explain. 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 8. List one key performance indicator for the three other balanced scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list

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