Integrating decentralization and performance evaluation systems One subunit of Track Sports Company had the following financial results last month: Requirements Complete the performance evaluation report

Integrating decentralization and performance evaluation systems One subunit of Track Sports Company had the following financial results last month: Requirements Complete the performance evaluation report for this subunit (round to two decimal places). Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? Which items should be investigated if part of management’s decision criteria is to investigate all variances equal to or exceeding $8,000 arm’ exceeding 10% (both criteria must be met)? Should only unfavorable variances be investigated? Explain. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. Will management place equal weight on each of the variances exceeding $8,000? Explain. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain. 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. Transcribed Image Text: Flexible Budget
% Variance
(For U)
Flexible Budget
$ 455,000
255,000
200,000
Subunit X
Actual Results
Variance (F or U)
Net Sales Revenue
Variable Expenses
Contribution Margin
Traceable Fixed Expenses
$ 474,000
261,000
213,000
38,000
29,000
Divisional Segment Margin
$ 175,000
$ 171,000

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