.

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%.)

	Actual	Flexible		Flexible Budget
Subunit X	Results	Budget		Variance (F or U)
Net Sales Revenue	$479,000	$453,000
Variable Expenses	261,000	254,000
Contribution Margin	$218,000	$199,000
Traceable Fixed Expenses	40,000	27,000
Divisional Segment Margin	$178,000	$172,000

	% Variance
	(F or U)
		%
		%
		%
		%
		%

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

only cost data

only revenue data

; therefore, this subunit must be

a cost center.

an investment center.

a profit center.

a revenue center.

Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding

$ 7 comma 000$7,000

and exceeding 10% (both criteria must be met)?

Management should investigate the following: (If a box is not used in the table, leave the box empty.)