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The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2014 at $903,810. The only variable costs budgeted for the division were cost of goods sold ($441,840) and selling and administrative ($64,880). Fixed costs were budgeted at $102,210 for cost of goods sold, $89,910 for selling and administrative, and $70,090 for noncontrollable fixed costs. Actual results for these items were:

Sales		$886,280
Cost of goods sold
Variable		411,830
Fixed		108,460
Selling and administrative
Variable		60,720
Fixed		67,800
Noncontrollable fixed		94,500

Assume the division is an investment center, and average operating assets were $1,072,800. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. (Round ROI to 1 decimal place, e.g. 1.5%.)

***** It is not 22.1 or 19.1****** I tried calculting it and none of those answers worked

Comment

HARRINGTON COMPANY Sports Equipment Division Responsibility Report 2014 Difference Favorable (F) Unfavorable (U) Neither Favorable nor Unfavorable (N) Budget Actual 17530 U Sales 903810 886280$ Variable Costs 30010T F 4160 F 34170T F 1664011 F Cost of Goods Sold 441840 411830 60,720 472550 413730 and Administrative 6488060.720 4160 Selling and Administrative Total Variable Costs Contribution Margin Controllable Fixed Costs 506720 397090 Cost of Goods Sold 102210 108,460 625011 U Selling and Administrative- t 1 t 67,8001 t 221101 89910 Total Controllable Fixed Costs 192120 176260 15860|TF # 237470$ 32500111 U Controllable Margin 204970