One subunit of Boxing Sports Company had the following financial results last month:

Requirements
1. Complete the performance evaluation report for this subunit (round to two decimal places).
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 $5,000 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 $5,000 variances? 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. Are they lead or lag indicators?Explain.

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Flexible Flexible Budget Budget % Variance for Actual Number Actual Results Variance Subunit X at Actual Prices (U or F) of Units Sold (U or F) $ 453,000 2.50,000 $ 203,000 52,000 $ 479,000 Sales Variable expenses 260,000 $ 219,000 Contribution margin Fixed expenses Operating income before traceable service department charges Traceable fixed expenses Divisional segment margin 56,000 S 151,000 $ 163,000 33,000 38,000 $ 125,000 $ 118,000 24