Requirements 1. Complete the performance evaluation report for this subunit. 2. Based on the data presented, what type of responsibility centre is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $15,500? Interpret your results. (What could cause these variances? What impact might these variances have on company inventory levels and operations?) Requirement 1. Complete the performance evaluation report for this subunit. (Enter the variances as a positive numbers. Label each variance as favourable (F) or unfavourable (U).) Adventure Sports-Subunit X Revenue by Product Downhill Model RI Downhill Model RII Cross-Country Model EXI Cross-Country Model EXII Snowboard Model LXI Total Actual Flexible Budget Variance Sales Static Flexible Budget Volume Variance (Master) Budget $ 321,000 156,000 167,000 280,000 2,000 U 282,000 260,000 424,000 9,000 F $ 1,441,000 $ 21,000 F $ 295,000 148,000 300,000 251,000 20,500 U 271,500 399,000 $ 1,413,500 Adventure Sports-Subunit X Revenue by Product Downhill Model RI Downhill Model RII Flexible Sales Static Budget Flexible Volume (Master) Actual Variance Budget Variance Budget $ 321,000 156,000 $ 167,000 $ 21,000 F $ 295,000 148,000 300,000 251,000 20,500 U 271,500 Cross-Country Model EXI Cross-Country Model EXII Snowboard Model LXI Total 280,000 $2,000 U 282,000 260,000 424,000 9,000 F $ 1,441,000 399,000 $ 1,413,500