Optimus company manufactures a variety of tools and industrial equipment. Operational data for the year ended December 31, 2017 and relevant budget are as follows.

Actual comparison with budget

sales	1,400,000	100,000 favorable
variable cost of goods sold	665000	45,000 unfavorable
variable selling and administrative expenses	125000	25,000 unfavorable
controllable fixed cost of good sold	170000	on target
controllable fixed selling and administrative expenses	80000	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 responsiblity report in thousands 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

1. variable cost of goods sold is decreased by 5%

2. Average operating assets are decreased by 10%

3. Sales are increased by 200,000 and this increase is expected to increase contribution margin by 80,000.