K Requirements 1. Complete the performance evaluation report for this subunit (round to three decimal places). 2. Based on the data presented, what type of responsibility center is this subunit? 3. Which items should be investigated if part of the management's decision criteria is to investigate all variances equal to or exceeding $10,500 and exceeding 14% (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. Do you think management will place equal weight on each of the $10,500 variances? Explain. 7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or lag indicator? Explain. 8. Give 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. Print Done - X One subunit of Soaring Sports Company had the following financial results last month: Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes therefore this subunit must be Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $10,500 and exce 14% (both criteria must be met)? (If an input field is not used in the table, leave the input field empty; do not select a label.) Management Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate to evaluate Favorable variances to determine the root cause of the variance. Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variance is due to One subunit of Soaring Sports Company had the following financial results last month: Kequirement 4. Should only untavorabie vanances de investigated? Explain. Managers should investigate to evaluate Favorable variances: to determine the root cause of the variance. Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances Management needs due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget variance is due to Requirement 6. Do you think management will place equal weight on each of the $10,500 variances? Explain. Management will Question Vie Additionally, they may not place much weight on because Requirement 7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or lag indicator? Explain. The performance report addresses the perspective of the balanced scorecard. performance measures tend to be t indicators. They typically One subunit of Soaring Sports Company had the following financial results last month: Monthly Performance Report For the Month Product Actual Budgeted Variance Variance Percentage Sales $ 543,000 $ 500,000 43,000 F 8.6% F 310,500 300,000 10,500 U 3.5% U Less: Variable expenses Contribution margin Less: Direct fixed expenses Segment margin $ 232,500 $ 200,000 32,500 F 16.25 % F 78,450 75,000 3,450 U 4.6 % U $ 154,050 48,000 $ 125,000 37,500 Less: Common fixed expenses $ 106,050 $ 87,500 29,050 10,500 F 18,550 F F 23.24 % F 28% F 21.2 % F Operating income Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes therefore this subunit must be Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $10,500 and exceeding 14% (both criteria must be met)? (If an input field is not used in the table, leave the input field empty; do not select a label.)