Dinkle Manufacturing 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, 2010, and relevant budget data are as follows.

	Actual		Comparison with Budget
Sales	$1,500,000		$100,000	favorable
Variable cost of goods sold	700,000		60,000	unfavorable
Variable selling and administrative expenses	125,000		25,000	unfavorable
Controllable fixed cost of goods sold	170,000		On target
Controllable fixed selling and administrative expenses	80,000		On target

Average operating assets for the year for the Home Division were $2,500,000 which was also the budgeted amount.

Complete the responsibility report for the Home Division. (If answer is zero, please enter 0, do not leave any fields blank. Round ROI to 1 decimal place, e.g. 0.2.)

DINKLE MANUFACTURING COMPANY
Home Division
Responsibility Report
For the Year Ended December 31, 2010
			Difference
			Favorable F
	Budget	Actual	Unfavorable U
Sales	$__________	$_________	$_________
Variable costs	_________	_________	_________
Cost of goods sold	_________	_________	_________
Selling & admin.	_________	_________	_________
Total variable costs	_________	_________	_________
Contribution margin	_________	_________	_________
Contr. direct fixed costs	_________	_________	_________
Cost of goods sold	_________	_________	_________
Selling & admin.	_________	_________	_________
Tot. fixed costs	_________	_________	_________
Controllable margin	$_________	$_________	$_________
	_________	_________	_________
ROI	%_________	%_________	%_________

Compute the expected ROI in 2011 for the Home Division, assuming the following independent changes to actual data. (Round answers to 1 decimal place, e.g. 5.1.)

1. Variable cost of goods sold is decreased by 6%.
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 $90,000.

1.	%_________
2	%_________
3.	%_________