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 Comparison with Budget $1,400,000 $100,000 favorable 670,000 56,000 unfavorable 124,000 26,000 unfavorable 169,000 On target 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) Your answer is correct. 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 Budget Actual 1,300,000 $ 1,400,000 $ 100,00 614,000 670,000 i 56,000 98,000 124,000 i 26,000 712,000 794,000 i 82,000 588,000 606,000 18, 169,000 169,000 i 81,000 81,000 i 250,000 250,000 i to 338,000 $ 356,000 $ 18, 16.9 % 17.8 % e Textbook and Media Attempts: 5 of 10 used (c) Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 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 $86,000. % e Textbook and Media Save for Later Attempts: 0 of 10 used Submit