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 Subunit X Results Budget Variance (For U) (For U) Net Sales Revenue $ 478,000 $ 450,000 % Variable Expenses 264,000 253,000 % Contribution Margin $ 214,000 $ 197,000 % Traceable Fixed Expenses 38,000 25,000 Divisional Segment Margin $ 176,000 $ 172,000 % Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? 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 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 $8,000 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 Favorable expense variances 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 Requirement 6. Will management place equal weight on each of the variances exceeding $8,000? Explain. Management will 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 The performance report addresses the perspective of the balanced Scorecard. 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 i . Data Table Flexible Budget Variance (F or U) % Variance (F or U) Actual Results 478,000 $ 264,000 Flexible Budget 450,000 253,000 Subunit X Net Sales Revenue Variable Expenses Contribution Margin Traceable Fixed Expenses Divisional Segment Margin 214,000 38,000 197,000 25,000 172,000 $ $ 176,000 $ Print Done