Indigo 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, 2022, and relevant budget data are as follows. Actual Comparison with Budge Sales $1,401,000 $100,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 126,000 25,000 unfavorable Controllable fixed cost of goods sold 170,000 On target Controllable fixed selling and administrative expenses 77,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Sales Variable Costs Cost of Goods Sold Selling and Administrative Total Variable Costs Contribution Margin > < > > Controllable Direct Fixed Costs Cost of Goods Sold Selling and Administrative Total Controllable Direct Fixed Costs Controllable Margin ROI S S Budget 1301000 625000 INDIGO COMPANY Home Division Responsibility Report For the Year Ended December 31, 2022 4 Actual 1401000 680000 101000 126000 i 726000 575000 806000 595000 170000 170000 77000 247000 328000 164 % S 77000 247000 348000 17.4 INDIGO COMPANY Home Division Responsibility Report For the Year Ended December 31, 2022 s Actual 1401000 100000 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Favorable 680000 55000 Unfavorable 126000 25000 Unfavorable 806000 595000 170000 77000 247000 348000 80000 Unfavorable 20000 Favorable 20000 Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable 0 Neither Favorable nor Unfavorable Favorable 17.4 100 % Favorable Compute the expected ROI in 2022 for the Home Division, assuming the following independent changes to aktual data. (Round) ROI to 2 decimal places es. 1.57%) (1) Variable selling and administrative expenses are decreased by 6% (2) Average operating assets are decreased by 20.0% (3) Sales are increased by $199,000, and this increase is expected to increase contribution margin by $84,000. The expected ROI