How much is the difference in the contribution margin between the budget and actual cost? Is it favorable or unfavorable? How much is the difference in the net profit between the budget and actual cost? Is it favorable or unfavorable? Assume the division is an investment center, and average operating assets were $350,000. Compute ROI. If you become the manager of the Camping Division, what analysis will you make from the calculation? Do you have a recommendation related to the variance?

The Camping Division of Custer Company is operated as a profit center. Sales for the division were budgeted for 2017 at $436,000. The only variable costs budgeted for the division were cost of goods sold ($123,000) and selling and administrative ($32,500). Fixed costs were budgeted at $31,000 for cost of goods sold and $29,000 for selling and administrative. Actual results for these items were: $458,000 Sales Cost of goods sold Variable Fixed Selling and administrative Variable Fixed 131,000 35,000 27,000 28,000