Optimus 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, 2020, and relevant budget data are as follows.

		Actual		Comparison with Budget
Sales		$1,400,000		$100,000	favorable
Variable cost of goods sold		670,000		56,000	unfavorable
Variable selling and administrative expenses		124,000		26,000	unfavorable
Controllable fixed cost of goods sold		169,000		On target
Controllable fixed selling and administrative expenses		81,000		On target

Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount.

(a)

Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.)

OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2020
								Difference
		Budget			Actual			Favorable Unfavorable Neither Favorable nor Unfavorable
Variable CostsCost of Goods SoldTotal Controllable Direct Fixed CostsSalesControllable MarginTotal Variable CostsGross ProfitSelling and AdministrativeControllable Direct Fixed CostsContribution Margin		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
Cost of Goods SoldSelling and AdministrativeGross ProfitControllable MarginContribution MarginControllable Direct Fixed CostsTotal Variable CostsSalesVariable CostsTotal Controllable Direct Fixed Costs
Variable CostsContribution MarginCost of Goods SoldTotal Controllable Direct Fixed CostsControllable Direct Fixed CostsTotal Variable CostsSalesControllable MarginGross ProfitSelling and Administrative										FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable MarginTotal Variable CostsGross ProfitTotal Controllable Direct Fixed CostsSelling and AdministrativeContribution MarginVariable CostsControllable Direct Fixed CostsSalesCost of Goods Sold										FavorableUnfavorableNeither Favorable nor Unfavorable
Cost of Goods SoldSalesTotal Controllable Direct Fixed CostsTotal Variable CostsControllable MarginVariable CostsContribution MarginControllable Direct Fixed CostsGross ProfitSelling and Administrative										FavorableUnfavorableNeither Favorable nor Unfavorable
Cost of Goods SoldSalesControllable MarginGross ProfitTotal Controllable Direct Fixed CostsSelling and AdministrativeContribution MarginVariable CostsTotal Variable CostsControllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Variable CostsControllable Direct Fixed CostsControllable MarginContribution MarginCost of Goods SoldTotal Controllable Direct Fixed CostsSelling and AdministrativeGross ProfitSalesTotal Variable Costs
Gross ProfitSelling and AdministrativeSalesControllable Direct Fixed CostsControllable MarginTotal Variable CostsCost of Goods SoldTotal Controllable Direct Fixed CostsVariable CostsContribution Margin										FavorableUnfavorableNeither Favorable nor Unfavorable
Gross ProfitTotal Variable CostsSelling and AdministrativeTotal Controllable Direct Fixed CostsControllable Direct Fixed CostsSalesControllable MarginContribution MarginCost of Goods SoldVariable Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsSalesControllable MarginGross ProfitContribution MarginVariable CostsTotal Variable CostsSelling and AdministrativeControllable Direct Fixed CostsCost of Goods Sold										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsTotal Variable CostsSelling and AdministrativeVariable CostsSalesCost of Goods SoldControllable Direct Fixed CostsContribution MarginControllable MarginGross Profit		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
ROI			%			%			%	FavorableUnfavorableNeither Favorable nor Unfavorable