The accountant for a subunit of Adrenaline Sports Company went on vacation before completing the subunit's monthly performance report. This is as far as she got: E: (Click the icon to view the performance report.) Requirements 1. Complete the performance evaluation report for this subunit. 2. Based on the data presented, what type of responsibility centre is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $15,000? Interpret your results. (What could cause these variances? What impact might these variances have on company inventory levels and operations?) Requirement 1. Complete the performance evaluation report for this subunit. (Enter the variances as a positive numbers. Label each variance as favourable (F) or unfavourable (U).) Static Adrenaline SportsSubunit X Flexible Budget Flexible Sales Volume (Master) Revenue by Product Actual Variance Budget Variance Budget Downhill Model RI $ 328,000 $ 17,000 F $ 303,000 Downhill Model RII. $ 151,000 $ 162,000 $ 146,000 Cross-Country Model EXI. $ 283,000 $1,000 U $ 284,000 $ 302,000 Cross-Country Model EXII $ 250,000 $ 246,000 $ 15,500 U$ 261,500 $ 428,000 $ 7,000 $ Snowboard Model LXI. 403,000 F $ 1,440,000 $ 1,415,500 Total $ Adrenaline SportsSubunit X Revenue by Product Downhill Model RI.. Downhill Model RII.... Cross-Country Model EXI..... Cross-Country Model EXII. Snowboard Model LXI. .. Flexible Budget Actual Variance 328,000 151,000 283,000 $ 1,000 U 250,000 428,000 Sales Static Flexible Volume (Master) Budget Variance Budget $ 17,000 F S 303,000 $ 162,000 146,000 284,000 302,000 246,000 15,500 U 261,500 403,000 7,000 F $ 1,440,000 $ 1,415,500 Total