One subunit of Zoom Sports Company had the following financial results last month: Click the icon to view the financial results.) Read the requirements. ..... A B D E 1 N 3 Zoom Sports Manufacturing Company-Team Sports Subunit Monthly Performance Report For the Month Variance Actual Budgeted Variance Percentage $ 546,000 $ 500,000 4 5 Sales 6 Less: Variable expenses 388,500 375,000 $ 157,500 $ 125,000 52,050 50,000 7 Contribution margin 8 Less: Direct fixed expenses 9 Segment margin 10 Less: Common fixed expenses $ 105,450 $ 75,000 38,500 25,000 11 Operating income $ 66,950 $ 50,000 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 $13,500 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? Explain. 6. Do you think management will place equal weight on each of the $13,500 variances? Explain. 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is 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. Requirement 1. Complete the performance evaluation report for this subunit (round to three decimal places) Enter a varance 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, "X) Zoom Sports Company - Team Sports Subunit Monthly Performance Report For the Month Variance Product Actual Budgeted Variance Percentage Sales $ 545.000 $ 500.000 Less Variable expenses 388,500 375,000 Contribution margin $157,500 125.000 52,050 50,000 % Less: Direct fixed expenses Segment margin $ $ 105,450 38,500 % 75,000 25,000 Less: Common fixed expenses % Operating income $ 66,950 $ 50,000 % Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes therefore this subunit must be Requirements. Which items should be investigated it part of management's decision criteria is to investigate all variances equal to or exceeding $13,500 and exceeding 10% (both criteria must be met)? (If an input field is not used in the table, leave the input field empty do not select a tabel GEGEE Requirement 4. Should only untavorable variances de investigated? Explain Managers should investigate Favorable variances Management needs to evaluate 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 Derences in sales volume are captured by the The flexible budget vanance is due to Requirement 6. Do you think management will place equal weight on each of the $13.500 variances? Explain Management win because Additionally, they may not place much weighton Requirement 7. Which balanced Scorecard perspective is being addressed through the performance report in your opinion, the performance report and being indicator? Explain The performance report addresses the perspective of the balanced Scorecard performance measures tend to be indication. They typically Requirement 8. Give one key performance indicator for the other three balanced Scorecard perspectives. Indicate which perspective is being addressed by the indicators you liat Are they lead or lag indicators? Explain Complete the following table to identity one key performance Indicator for the three other balanced Scorecard perspectives Balanced Scorecard perspective Key performance Indicator Are they lead orlag indicators? Explain Each of these performance measures is a Indicator which tend to The performance Indicatorssted above are better