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, 2017, and relevant budget data are as follows.

		Actual		Comparison with Budget
Sales		$1,400,000		$100,000	favorable
Variable cost of goods sold		674,000		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.

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Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 1 decimal place, e.g. 1.5.) OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Budget Favorable Sales Variable Costs Cost of Goods Sold Unfavorable Selling and Administrative Total Variable Costs Contribution Margin Controllable Direct Fixed Costs Cost of Goods Sold Selling and Administrative Total Controllable Direct Fixed Costs Contribution Margin ROI Unfavorable Unfavorable Favorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable Favorable % Favorable xl Your answer is incorrect. Try again Sentinel Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Sentinel expanded into the precut housing market when it acquired Jensen Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers lots for assembly. Sentinel designated the Jensen Division as an investment center Sentinel uses return on investment (ROI) as a performance measure with investment defined as average operating assets Management bonuses are based in part on ROI. All investments are expected to earn a minimum rate of return of 17.0% Jensen's ROI has ranged from 19.9% to 23.3% since it was acquired. Jensen had an investment opportunity in 2017 that had an estimated ROI of 18.8%. Jensen management decided against the investment because it believed the investment would decrease the division's overall ROI Selected financial information for Jensen are presented below. The division's average operating assets were $12,641,000 for the year 2017 SENTINEL INDUSTRIES Jensen Division Selected Financial Information For the Year Ended December 31, 2017 $26,001,000 9,081,000 2,507,000 Sales Contribution margin Controllable margin Calculate the following performance measures for 2017 for the Jensen Division. (Round ROI to 1 decimal place, e.g. 1.5.) (1) Return on investment (ROI) (2) Residual income 2148970