25-33 25-34 P25.5A (LO 4) 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, 2020, and relevant budget data are as follows. 25-35 25-36 Prepare responsibility report for an investment center, and compute ROI. 25-37 25-43 25.17 Bas! Actual Comparison with Budge t $1,400,000 $100,000 favorable 665,000 45,000 unfavorable Xce o iting ment plant assets 125,000 25,000 unfavorable Sales Variable cost of goods sol d Variable selling and admin istrative expenses Controllable fixed cost of goods sold Controllable fixed selling a nd administrative expense cost 170,000 On target 35 80,000 On target rental praise porno fr 5:37 (a) ind s 25-47 Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Instructions 25:40 26 a. Prepare a responsibility report in thousands of dollars) for the Home Division 1 27-1 b. Evaluate the manager's performance. Which items will likely be investigated by top management? c. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. 1. Variable cost of goods sold is decreased by 5%. 2. Average operating assets are decreased by 10%. 3. Sales are increased by $200,000, and this increase is expected to increase contribution margin by $80,000 a. Controllable margin: Budget $330; Actual $360 21 6 Ben pra ome 37 VA