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%.) Subunit X Actual Results Flexible Budget Flexible Budget Variance (F or U) % Variance (F or U) Net Sales Revenue $ 476,000 $ 456,000 % 263,000 254,000 Variable Expenses Contribution Margin Traceable Fixed Expenses % $ 213,000 $ 202,000 % 39,000 29,000 $ 174,000 $ 173,000 Divisional Segment Margin % 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 ; 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 $8,000 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.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate 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 The flexible budget variance is due to due to sales volume differences between budget and actual. Differences in sales volume are captured by the Requirement 6. Will management place equal weight on each of the variances exceeding $8,000? 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 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 by the indicators you list. Complete the following table to identify one key performance indicator for the three other balanced scorecard perspectives. Balanced scorecard perspective Key performance indicator Data table Flexible Budget % Variance (F or U) Subunit X Net Sales Revenue Variable Expenses Actual Results Flexible Budget Variance (F or U) 476,000 $ 456,000 263,000 254,000 Contribution Margin 213,000 202,000 39,000 29,000 Traceable Fixed Expenses 174,000 $ 173,000 Divisional Segment Margin Print Done -