Remaining Time: 2 hours, 11 misutes, 23 seconds, Question Completion Stature Question 11 of 12 May Do another question will save The respons 2 points Save Answer Question 11 QUESTION 3 - REQUIREMENT 3 Surge Surfing is a retailer that sells surfing equipment and gear, The firm leases space for stores in shopping centres, and the organisational structure consists of regions, districts and stores. Each region consists of two or more districts, each district consists of three or more stores. Each store, district and region has been established as a profit centre. At all levels, the company uses a responsibility accounting system focusing on information and knowledge rather than on blame and control. Each year, managers, in consultation with their supervisors, establish financial and non-financial goals, and these goals are integrated into the budget, Actual performance is measured each month. The Queensland region consists of the southern district and northern district. The Southern district includes the Caloundra, Noosa and Coolangatta stores. The southern district's performance has not been up to expectations, For the month of October, the district manager has set performance goals with the managers of the Caloundra and Noosa stores, who will receive bonuses if certain performance measures are exceeded Since the manager of the Coolangatta store has decided not to participate in the bonus scheme, the performance of this store will not be displayed in the performance report under consideration, Since the district manager is unsure what type of bonus will encourage better performance, the Caloundra manager will receive a bonus based on sales in excess of budgeted sales of $1,200,000, while the Noosa manager will receive a bonus based on profit in excess of budgeted net profit, The company's profit goal for each store is 16 per cent of sales. The budgeted sales revenue for the Noosa store is $1,100.000. Other pertinent data for October are as follows: . Southom district sales revenue was $3,300,000. Sales at the Caloundra store were 40 per cent of Southem district sales, while sales at the Noosa store were 35 per cent of district sales. . Southern district cost of goods sold amounted to $1,386,000. The cost of goods sold in both Caloundra and Noosa was 42 per cent of their store sales. . Variable selling expenses (sales commissions) were 6 per cent of sales for all stores, districts and regions. . Variable administrative expenses were 2.5 per cent of sales for all stores, districts and regions. Maintenance costs include cleaning and repair services and are a direct cost for each store. The store manager has complete control over this outlay. Southern district's maintenance costs of $23,300 were incurred as follows: Caloundra, $14,000, Noosa, $1,300; and Coolangatta, $8,000. The Southum district spent $180.000 on advertising. Advertising is considered a direct cost for each store and is completely under the control of the store manager. The Caloundra store spent two-thirds of the Southern district's total outlay for advertising, which was 10 times the amount spent in the Noosa on advertising. district total Southern district rental expenses amounted to $350,000. The rental expenses at the Caloundra store were 40 per cent of the Southern district's total, while the Noosa store incurred 30 per cent of the General and administrative expenses for the Southern district amounted to $380,000. District expenses were allocated to the stores based on sales. Queensland Region paneral and administrative expenses of $300,000 were allocated to the Southern district. These expenses were. in turn, allocated equally to the district's three stores. Required: 3. Explain why it is important to distinguish between the performance of a business unit manager and the performance of a business unit. (2 marks) For the TOOBut, PIRI ALT+FIO PO) or ALT.EN. FIDOMin MacBook Air DI F 10 5 8