Requirement 223. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $12,000 and exceeding 16% (both criteria must be met)? (Select all that apply.)

A. Operating expenses

B. Sales

C. Service department costs

D. Cost of goods sold

CC Agile Sports-Subunit X Actual Percentage Variance (U or F) Flexible Budget Flexible Variance Budget (U or F) 500,000 $ 45,500 375,000 12.000 U Sales.... $ $ 545,500 387,000 9.1 % F Cost of goods sold. Gross margin. . 3.2 % U $ 33,500 F 158,500 10.380 26.8 % 125,000 10,000 F 380 U 3.8 % Operating expenses Operating income before service department charges Service department charges (allocated) $ 148,120 $ 115.000 33,120 F 28.8 % F 52,000 40.000 12,000 U 30 % U Operating income. $ 96.120 $ 75,000 $ 21.120 F 28.16 % F