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Objectives 2,3,4 P24-28A Integrating decentralization and performance evaluation systems One subunit of Field Sports Company had the following financial results last month 1. Sales $24,000 F Flexible Budget Variance (F or U) % Variance (F or U) Actual Results Flexible Budget SubunitX Sales Variable Expenses Contribution Margin Traceable Fixed Expenses Divisional Segment Margin 474,000 261,000 213,000 37,000 176,000 S450,000 252,000 198,000 26,000 172,000 Requirements 1. Complete the performance evaluation report for this subunit (round to two 2. Based on the data presented and your knowledge of the company, what type of 3. Which items should be investigated if part of management's decision criteria is to decimal places) responsibility center is this subunit? investigate all variances equal to or exceeding $4,000 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? 6. Will management place equal weight on each of the variances exceeding $4,000? 7. Which balanced scorecard perspective is being addressed through this performance Explain. Explain. report? In your opinion, is this performance report a lead or a lag indicatori? 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. OebiveDocuments Book 9 Saved File Home Insert Data Review View Tell me what you want to do Open in Excel X Calibri e General Paste Conditional asoable. Insert Delete For FET: Center Alignmert - . A. A. $-% , '08 48 Formatting as Table Undo Clipboard Font Number Tables Cells Reconnecting to server As soon as the connection is restored, we'll complete your last actions A14 3 Subunit X 4 sales 5 Variable Expenses 6 Contribution Maargir 7 Traceable Fixed Expenses 8 Divisional Segment Margin Actual Results Flexible Budget Flexible Budget Variance (F or U) % Variance (For U) $474,000 261000 213000 37000 $176,000 $450,000 252000 198000 26000 $172,000 $24,000 (F) 9000 (U) 15000 (F) 11000 (U) $4,000(F) 5.33% (F) 3.57% (U) 7.58% (F) 5.56% (U) 2.33% (F)