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

Requirements
1. Complete the performance evaluation report for the subunit (round to three decimal places).
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 equal to or exceeding $9,500 and exceeding 16% (both criteria must be met)?
4. Should only unfavourable variances be investigated? Explain.
5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain.
6. Do you think management will place equal weight on each of the $9,500 variances? Explain.
7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance reports a lead or lag indicator? Explain.
8. List one key performance indicator for the other three balanced scorecard perspectives. Indicate which perspective is being addressed by the indicators you list. Are they lead or lag indicators? Explain.

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Flexible Budget Percentage Flexible Variance Variance Speed -Subunit X Sales Actual Budget (Uor F) (U or F $486,900 $450,000 250,000 Gross margin..$227,400 $200,000 51,750 50,000 Cost of goods sold 259,500 Operating expenses Operating income before service department charges Service department charges 40,750 31,2.50 $134,900 $118,750 allocated) ome