The accountant for a subunit of Adventure Sports Company went on vacation before completing the subunit's monthly performance report. This is as far as she got: (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 $16,500? 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 Adventure Sports-Subunit X Flexible Budget Flexible Sales Volume (Master) Revenue by Product Actual Variance Budget Variance Budget Downhill Model RI . $ 320,000 $ 21,000 F $ 298,000 Performance report Downhill Model RII . . $ 157,000 $ 168,000 $ 148,000 Cross-Country Model EXI. . $ 290,000 $ 3,000 U $ 293,000 $ 310,000 Flexible Sales Static Cross-Country Model EXII . $ 258,000 $ 248,000 $ 20,500 U $ 268,500 Adventure Sports-Subunit X Budget Flexible Volume (Master) Revenue by Product Actual Variance Budget Variance Budget Snowboard Model LXI. . . $ 423,000 $ 5,000 F $ 401,000 Downhill Model RI . .. $ 320,000 $ 21,000 F $ 298,000 Total $ 1,448,000 $ 1,425,500 Downhill Model RII . . . . . . . 157,000 $ 168,000 148,000 Requirement 2. Based on the data presented, what type of responsibility centre is this subunit? Cross-Country Model EXI. . . .. 290,000 $ 3,000 U 293,000 310,000 Cross-Country Model EXII . 258,000 248,000 20,500 U 268,500 This subunit is a(n) Snowboard Model LXI. ... 423,000 5,000 F 401,000 Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances $ 1,448,000 $ 1,425,500 TotalRequirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $16,500? Using the flexible budget variance as a guide, which of the following items will be investigated? (Select all that apply.) A. Snowboard Model LXI B. Downhill Model RI c. Downhill Model RII D. Cross-Country Model EXI E. Cross-Country Model EXII F. None of the items should be investigated. Using the sales volume variance as a guide, which of the following items will be investigated? (Select all that apply.) A. Cross-Country Model EXII B. Downhill Model RII c. Cross-Country Model EXI D. Downhill Model RI E. Snowboard Model LXI OF. None of the items should be investigated.Interpret your results. (What could cause these variances? What impact might these variances have on company inventory levels and operations?) The sales volume variance Therefore, was different than budgeted for every model. The company sales mix appears to be shifting in the direction of This could result in inventory. Management may need to do a better job marketing their Additionally, the company may end up with if production schedules are not revised to accommodate the increasing demand for