The Sports Equipment Division of Harrington plc is operated as a profit center. Sales for the division were budgeted for 2020 at £900,000. The only variable costs budgeted for the division were cost of goods sold (£440,000) and selling and administrative (£60,000). Fixed costs were budgeted at £100,000 for cost of goods sold, £90,000 for selling and administrative, and £70,000 for non-controllable fixed costs. Actual results for these items were:

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 2020.
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.