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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

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 $1,399,000 $100,000 favorable

Variable cost of goods sold 670,000 55,000 unfavorable

Variable selling and administrative expenses 124,000 25,000 unfavorable

Controllable fixed cost of goods sold 170,000 On target

Controllable fixed selling and administrative expenses 83,000 On target

Average operating assets for the year for the Home Division were $2,000,000which was also the budgeted amount.

Prepare a responsibility report for the Home Division (list variable costs before expense costs, round ROI to two decimal places)

Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data (round ROI to two decimal places)

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