Can someone help me with thelast part of this question I just can't figure it out. I only need Part C I already figured the rest.

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.

Actual

Comparison with Budget

Sales$1,400,000$100,000favorableVariable cost of goods sold665,00045,000unfavorableVariable selling and administrative expenses125,00025,000unfavorableControllable fixed cost of goods sold170,000On targetControllable fixed selling and administrative expenses80,000On target

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

Your answer is correct. 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

Responsibility Report

For the Year Ended December 31, 2017

Difference

Budget

Actual

Favorable

Unfavorable

Neither Favorable

nor Unfavorable

Gross ProfitTotal Variable CostsContribution MarginControllable MarginCost of Goods SoldSelling and AdministrativeSalesTotal Controllable Direct Fixed CostsVariable CostsControllable Direct Fixed Costs

res_EAT_1315392610989_0_986061061318209_1_resp_6

$1,300,000

$1,400,000

$100,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_018_resp_1

Gross ProfitSelling and AdministrativeVariable CostsTotal Variable CostsControllable Direct Fixed CostsSalesTotal Controllable Direct Fixed CostsContribution MarginControllable MarginCost of Goods Sold

res_EAT_1315392610989_0_986061061318209_022_resp_10

Selling and AdministrativeVariable CostsControllable Direct Fixed CostsTotal Variable CostsTotal Controllable Direct Fixed CostsContribution MarginControllable MarginCost of Goods SoldGross ProfitSales

res_EAT_1315392610989_0_986061061318209_033_resp_4

620,000

665,000

45,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_050_resp_2

Selling and AdministrativeTotal Variable CostsTotal Controllable Direct Fixed CostsGross ProfitSalesVariable CostsContribution MarginControllable Direct Fixed CostsControllable MarginCost of Goods Sold

res_EAT_1315392610989_0_986061061318209_054_resp_7

100,000

125,000

25,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_071_resp_2

Total Variable CostsGross ProfitSalesControllable MarginSelling and AdministrativeVariable CostsCost of Goods SoldControllable Direct Fixed CostsTotal Controllable Direct Fixed CostsContribution Margin

res_EAT_1315392610989_0_986061061318209_075_resp_9

720,000

790,000

70,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_092_resp_2

Gross ProfitSalesTotal Variable CostsControllable Direct Fixed CostsSelling and AdministrativeVariable CostsContribution MarginTotal Controllable Direct Fixed CostsControllable MarginCost of Goods Sold

res_EAT_1315392610989_0_986061061318209_096_resp_1

580,000

610,000

30,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_113_resp_1

Controllable Direct Fixed CostsCost of Goods SoldControllable MarginSalesSelling and AdministrativeGross ProfitTotal Controllable Direct Fixed CostsVariable CostsTotal Variable CostsContribution Margin

res_EAT_1315392610989_0_986061061318209_117_resp_2

SalesTotal Variable CostsGross ProfitVariable CostsContribution MarginControllable Direct Fixed CostsControllable MarginSelling and AdministrativeCost of Goods SoldTotal Controllable Direct Fixed Costs

res_EAT_1315392610989_0_986061061318209_128_resp_4

170,000

170,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_145_resp_3

Gross ProfitSalesSelling and AdministrativeTotal Controllable Direct Fixed CostsContribution MarginControllable MarginCost of Goods SoldControllable Direct Fixed CostsTotal Variable CostsVariable Costs

res_EAT_1315392610989_0_986061061318209_149_resp_7

80,000

80,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_166_resp_3

Controllable Direct Fixed CostsTotal Controllable Direct Fixed CostsTotal Variable CostsCost of Goods SoldVariable CostsSalesSelling and AdministrativeContribution MarginControllable MarginGross Profit

res_EAT_1315392610989_0_986061061318209_170_resp_8

250,000

250,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_187_resp_3

Selling and AdministrativeCost of Goods SoldControllable MarginContribution MarginTotal Controllable Direct Fixed CostsTotal Variable CostsGross ProfitVariable CostsControllable Direct Fixed CostsSales

res_EAT_1315392610989_0_986061061318209_191_resp_3

$330,000

$360,000

$30,000

FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_208_resp_1

ROI16.5

%18

%1.5

%FavorableUnfavorableNeither Favorable nor Unfavorable

res_EAT_1315392610989_0_986061061318209_218_resp_1

(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 by5%.

%(2)Average operating assets are decreased by10%.

%(3)Sales are increased by $200,000, and this increase is expected to increase contribution margin by $80,000.21.6

%