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. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1.399,000 670,000 124,000 170,000 83,000 Comparison with Budget $100,000 favorable 55,000 unfavorable 25,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget 1299000 Actual 1399000 Sales $ 100000 Favorable Variable Costs Cost of Goods Sold 615000 i 670000 i 55000 i Unfavorable Selling and Administrative 99000 i 124000 i 25000 i Unfavorable Total Variable Costs 714000 i 794000 i 80000 i Unfavorable Contribution Margin 585000 605000 20000 Favorable Controllable Direct Fixed Costs Cost of Goods Sold 170000 170000 70000 1 Neither Favorable nor Unfavorable Selling and Administrative 83000 83000 Neither Favorable nor Unfavorable 2 Neither Favorable nor Unfavorable Total Controllable Direct Fixed Costs Controllable Margin $ 253000 1 332000 16.6 $ 53000 1 352000 17.6 $ 20000 Favorable ROI % % 10 % Favorable Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, eg. 1.57%.) The expected ROI (1) Variable cost of goods sold is 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