10.17

Sales Cost of goods sold Variable 408.000 Fixed 105.000 Selling and administrative Variable 61.000 Fixed 66,000 Noncontrollable 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 ble hxed costs are controllable at the investment center level. Compute ROI using the actual amounts. -current year and for anges. E10.17 (LO 4), AP The South Division of Wiig Company reported the following data for Sales $3.000.000 Variable costs 1,950,000 Controllable fixed costs 600,000 Average operating assets 5,000,000 Top management is unhappy with the investment center's return on investment (ROD). It asks the man- ager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $150,000. 3. Reduce average operating assets by 4%. Instructions report for an a. Compute the return on investment (ROI) for the current year. b. Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round to one decimal.) E10.18 (LO 4), AP Service Writing The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontin Santina Taal month