1. Sheridan Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Steven Garcia, had divided the company into two segments: Home Internet Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments. Steven has asked you to help him create a performance reporting system that will allow him to measure each segments performance in terms of its profitability. To that end, the following information has been collected on the Home Internet Service segment for the first quarter of 2022.

		Budgeted		Actual
Service revenue		$25,800		$25,200
Allocated portion of:
Building depreciation		10,200		10,200
Advertising		5,200		4,400
Billing		3,300		2,700
Property taxes		1,200		1,200
Material and supplies		1,400		1,300
Supervisory salaries		8,500		9,700
Insurance		3,700		3,400
Wages		2,800		3,600
Gas and oil		2,600		3,100
Equipment depreciation		1,400		1,100

Prepare a responsibility report for the first quarter of 2022 for the Home Internet Service Segment.

2. The service division of Wildhorse Industries reported the following results for 2022.

Sales		$497,000
Variable costs		298,200
Controllable fixed costs		94,040
Average operating assets		582,000

Management is considering the following independent courses of action in 2023 in order to maximize the return on investment for this division.

1.		Reduce average operating assets by $145,500, with no change in controllable margin.
2.		Increase sales $157,140, with no change in the contribution margin percentage.

Compute the controllable margin and the expected return on investment for 2023 for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5%.)

		Alternative 1			Alternative 2
The controllable margin		$enter a controllable margin in dollar			$enter a controllable margin in dollar
The expected return on investment		enter a percentage of expected return on investment	%		enter a percentage of expected return on investment	%