Mailings Review We |AARADE Aance ABB H Healing 1 Normal No Space Heading 3 P10-5A Optimus Company manufactures a variety of tools and industrial equipment. The Prepare responsibility report company operates through three divisions. Each division is an investment center: Operat for an investment center, ing data for the Home Division for the year ended December 31, 2017, and relevant budget and compute ROI. data are as follows. (L04), Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1,400,000 665,000 125,000 170,000 Comparison with Budget $100,000 favorable 45,000 unfavorable 25,000 unfavorable On target 80,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount Instructions (a) Prepare a responsibility report (in thousands of dollars for the Home Division. (b) Evaluate the manager's performance. Which items will likely be investigated by top management? c) Compute the expected ROI in 2017 for the Home Division, assuming the following independent changes to actual data. (D) Variable cost of goods sold is decreased by (2) Average operating assets are decreased by 10% (3) Sales are increased by $200,000, and this increase is expected to increase contri bution margin by $80,000 (a) Controllable margin Budget $330, Actual 360