E11.30 (LO 3, 4) The sports equipment division of Brandon McCarthy Company is operated as a profit centre. Sales for the division were budgeted for 2022 at $900,000. The only variable costs budgeted for the division were cost of goods sold ($440,000) and selling and administrative costs ($60,000). Fixed costs were budgeted at $100,000 for cost of goods sold, $90,000 for selling and administrative costs, and $70,000 for noncontrollable fixed costs. Actual results were as follows:

Sales	$870,000
Cost of goods sold
Variable	405,000
Fixed	105,000
Selling and administrative costs
Variable	62,000
Fixed	78,000
Noncontrollable fixed costs	80,000

Instructions

1. Prepare a responsibility report for the sports equipment division for 2022.
2. Assume the division is an investment centre, and average operating assets were $1 million. Calculate ROI.

Calculate ROI for current year and for possible future changes.