1,299,000 1,400,000 101,000 Sales Favorable Variable Costs Cost of Goods Sold (56,000) (24,000) (80,000) 619,000 675,000 Unfavorable 100,000 124,000 Selling and Administrative Unfavorable 719,000 799,000 Total Variable Costs Unfavorable Contribution Margin 580,000 601,000 21,000 Favorable Controllable Direct Fixed Costs Cost of Goods Sold 171,000 171,000 Neither Favorable nor Unfavorable 81,000 81,000 Selling and Administrative Neither Favorable nor Unfavorable 252,000 252,000 Total Controllable Direct Fixed Costs Neither Favorable nor Unfavorable 328,000 349,000 21,000 Controllable Margin Favorable ROI 1.11 %) Favorable 16.5 % 17.5 % Click if you would like to Show Work for this question: Open Show Work (c) Compute the expected ROI in 2017 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 1 decimal place, e.g. 1.5.) The expected ROI (1) Variable cost of goods sold is decreased by 6%. (2) Average operating assets are decreased by 11%. (3) Sales are increased by $200,000, and this increase is expected to increase contribution margin by $86,000 Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Problem 22-5A (Part Level Submission) Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2017, and relevant budget data are as follows. Comparison with Budget Actual Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses $1,400,000 675,000 124,000 171,000 81,000 $101,000 favorable 56,000 unfavorable 24,000 unfavorable On target On target Average operating assets for the year for the Home Division were $1,999,000 which was also the budgeted amount. (a) Your answer is partially correct. Try again Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 1 decimal place, e.g. 1.5.) OPTIMUS COMPANY Home Division For the Year Ended December 31, 2017 Favorable Neither Favorable Rudnat