The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division
Question:
Sales $880,000
Cost of goods sold
Variable 408,000
Fixed 105,000
Selling and administrative
Variable 61,000
Fixed 66,000
Non-controllable fixed 90,000
Instructions
(a) Prepare a responsibility report for the Sports Equipment Division for 2014.
(b) Assume the division is an investment center, and average operating assets were $1,000,000. The non-controllable fixed costs are controllable at the investment center level. Compute ROI.
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Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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