Ch23 Q13 c

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. Sales Variable cost of goods sold Variable selling and administrative expenses controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1399,000 680,000 124000 171.000 81.000 Comparison with Budget $101.000 favorable 55,000 unfavorable 25,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount Compute the expected Rol in 2020 for the Home Division, assuming the following independent changes to actual data. (Round Rol to 2 decimal places, eg. 1.57%) The expected ROI KI Variable cost of goods sold is decreased by 796 22 13) Average operating assets are decreased by 12.5% Sales are increased by $200.000, and this increase is expected to increase contribution margin by $85,000. 96