Bramble 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 $31,2027,$ and relevant budget

data are as follows.

Average operating assets for the year for the Home Division were $$2,000,000,$ which was also the budgeted amount. Home Division

Responsibility Report

For the Year Ended December $31,2027$

Budget

Variable Costs

Total Variable Costs

Controllable Direct Fixed Costs

Total Controllable Direct Fixed Costs

Actual

$

$ Difference

Favorable

Unfavorable

Neither Favorable

nor Unfavorable

$\{$:$$2]$ Compute the expected ROI in $2027$ for the Home Division, assuming the following independent changes to actual data. $($Round

ROI to $2$ decimal places, e$.$g$.1\mathrm{.}57\%.)$

The expected ROI

$(1)$ Variable selling and administrative expenses are decreased by $6\%.$

$(2)$ Average operating assets are decreased by $20\mathrm{.}0\%.$

$(3)$ Sales are increased by $$200,000,$ and this increase is expected to increase

contribution margin by $$86,000.$