One subunit of Racer Sports Company had the following financial results last month: (Click the icon to view the financial results.) Read the requirements. Requirement 1. Complete the performance evaluation report for this subunit (round to three decimal places). (Enter a variance for each account and select whether the variance is unfavorable (U) or favorable (F). Enter the results as positive numbers. Enter the variance percents as a percentage to three decimal places, "XX.XXX%".) i Requirements Racer Sports Company-Team Sports Subunit Monthly Performance Report For the Month Product Actual Budgeted Variance Sales $ 486,000 $ 450,000 Less: Variable expenses 260,000 250,000 Contribution margin $ 226,000 $ 200,000 Less: Direct fixed expenses 52,000 50,000 Segment margin $ 174,000 $ 150,000 35,000 25,000 Less: Common fixed expenses $ 139,000 $ 125,000 Operating income 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 $10,000 and exceeding 16% (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 $10,000 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 Print Done One subunit of Racer Sports Company had the following financial results last month: (Click the icon to view the financial results.) Read the requirements. Requirement 1. Complete the performance evaluation report for this subunit (round to three decimal places). (Enter a variance for each account and select whether the variance is unfavorable (U) or favorable (F). Enter the results as positive numbers. Enter the variance percents as a percentage to three decimal places, "XX.XXX%".) i Requirements Racer Sports Company-Team Sports Subunit Monthly Performance Report For the Month Product Actual Budgeted Variance Sales $ 486,000 $ 450,000 Less: Variable expenses 260,000 250,000 Contribution margin $ 226,000 $ 200,000 Less: Direct fixed expenses 52,000 50,000 Segment margin $ 174,000 $ 150,000 35,000 25,000 Less: Common fixed expenses $ 139,000 $ 125,000 Operating income 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 $10,000 and exceeding 16% (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 $10,000 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 Print Done