4. The financial results for one of the subunits of Factory Six Racing is presented in the partially completed performance evaluation report below.

Subunit - CobraST	Actual	Flexible Budget	Flexible Budget Variance (U or F)	Percentage* Variance (U or F)
Sales	$243,000	$225,000
Cost of goods sold	130,000	125,000
Gross margin	$113,000	$100,000
Operating expenses	26,000	25,000
Operating income before service department charges	$87,000	$75,000
Service department charges (allocated)	17,500	12,500
Operating income	$69,500	$62,500

* Flexible budget variance/Flexible budget

i. Complete the performance report rounding to two decimal places.

ii. Based on the data presented, what type of responsibility center is this subunit?

iii. 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)?