One subunit of Express Sports Company had the following financial results last month: (Click the icon to view the financial results.) Data Table Flexible Budget Variance (F or U) % Variance (F or U) Subunit X Net Sales Revenue Actual Results 473,000 $ 262,000 Flexible Budget 454,000 255,000 Variable Expenses Contribution Margin 211,000 38,000 199,000 28,000 Traceable Fixed Expenses 173,000 $ 171,000 Divisional Segment Margin Print Print Done Done Doaminamant ? Albiohitomo ohould be inventiaetod if nort of monoaomontio docinion oritorio io to insotiaato all yorianaona Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account as a positive number and select whether the variance is favorable or unfavorable. Enter the variance percent as a percentage rounded to two decimal places, X.XX%.) Actual Flexible Flexible Budget Variance (F or U) % Variance (F or U) Subunit x Net Sales Revenue Variable Expenses Contribution Margin Results $ 473,000 $ 262,000 Budget 454,000 255,000 | % $ 211,000 $ 38,000 199,000 28,000 Traceable Fixed Expenses $ 173,000 $ 171,000 Divisional Segment Margin Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? This performance report includes Vl; therefore, this subunit must be al to Requirement 3. Which items should be investigated if part of management's decision criteria is or exceeding $5,000 and exceeding 10% (both criteria must be met)? a cost center. Management should investigate the following: (If a box is not used in the table, leave the box em an investment center. a profit center. Choose from any list or enter any number in the input fields and then continue to the next a revenue center. Requirement 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)? Management should investigate the following: (If a box is not used in the table, leave the box empty.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate 1. Favorable expense variances Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. v due to sales volume differences between budget and actual. Differences in sales volume are The flexible budget variances captured by the . The flexible budget variance is due to Requirement 6. Will management place equal weight on each of the variances exceeding $5,000? Explain. Management will because because Requirement 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. perspective of the balanced Scorecard. The performance report addresses the performance measures tend to be indicators. They typically Requirement 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. Complete the following table to identify one key performance indicator for the three other balanced Scorecard perspectives. Balanced scorecard Key performance perspective indicator
