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		$1,401,000		$100,000	favorable
Variable cost of goods sold		680,000		55,000	unfavorable
Variable selling and administrative expenses		126,000		24,000	unfavorable
Controllable fixed cost of goods sold		170,000		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
Total Controllable Direct Fixed CostsSalesControllable MarginControllable Direct Fixed CostsVariable CostsTotal Variable CostsCost of Goods SoldSelling and AdministrativeGross ProfitContribution Margin		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsControllable MarginContribution MarginControllable Direct Fixed CostsGross ProfitCost of Goods SoldSelling and AdministrativeSalesVariable CostsTotal Variable Costs
Selling and AdministrativeControllable MarginVariable CostsTotal Variable CostsCost of Goods SoldContribution MarginSalesGross ProfitTotal Controllable Direct Fixed CostsControllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
SalesControllable Direct Fixed CostsContribution MarginGross ProfitControllable MarginTotal Variable CostsVariable CostsCost of Goods SoldSelling and AdministrativeTotal Controllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Selling and AdministrativeSalesTotal Variable CostsGross ProfitCost of Goods SoldContribution MarginTotal Controllable Direct Fixed CostsVariable CostsControllable MarginControllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
SalesVariable CostsGross ProfitSelling and AdministrativeControllable MarginContribution MarginTotal Controllable Direct Fixed CostsCost of Goods SoldTotal Variable CostsControllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Variable CostsGross ProfitControllable Direct Fixed CostsTotal Controllable Direct Fixed CostsControllable MarginSalesContribution MarginVariable CostsCost of Goods SoldSelling and Administrative
Controllable MarginGross ProfitControllable Direct Fixed CostsTotal Variable CostsTotal Controllable Direct Fixed CostsSelling and AdministrativeSalesVariable CostsContribution MarginCost of Goods Sold										FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable Direct Fixed CostsVariable CostsSalesTotal Controllable Direct Fixed CostsCost of Goods SoldControllable MarginGross ProfitContribution MarginSelling and AdministrativeTotal Variable Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable Direct Fixed CostsContribution MarginTotal Variable CostsCost of Goods SoldTotal Controllable Direct Fixed CostsSalesVariable CostsSelling and AdministrativeControllable MarginGross Profit										FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginSelling and AdministrativeCost of Goods SoldControllable MarginControllable Direct Fixed CostsVariable CostsTotal Controllable Direct Fixed CostsSalesGross ProfitTotal Variable Costs		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
ROI			%			%			%	FavorableUnfavorableNeither Favorable nor Unfavorable