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		$1,400,000		$101,000	favorable
Variable cost of goods sold		680,000		55,000	unfavorable
Variable selling and administrative expenses		124,000		24,000	unfavorable
Controllable fixed cost of goods sold		169,000		On target
Controllable fixed selling and administrative expenses		79,000		On target

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

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 CostsControllable MarginCost of Goods SoldSalesSelling and AdministrativeControllable Direct Fixed CostsContribution MarginGross ProfitTotal Variable CostsVariable Costs		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable MarginVariable CostsSalesCost of Goods SoldTotal Controllable Direct Fixed CostsControllable Direct Fixed CostsSelling and AdministrativeGross ProfitContribution MarginTotal Variable Costs
Controllable Direct Fixed CostsSelling and AdministrativeContribution MarginCost of Goods SoldTotal Controllable Direct Fixed CostsTotal Variable CostsControllable MarginVariable CostsSalesGross Profit										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Variable CostsCost of Goods SoldSalesControllable Direct Fixed CostsSelling and AdministrativeContribution MarginControllable MarginTotal Controllable Direct Fixed CostsVariable CostsGross Profit										FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable Direct Fixed CostsGross ProfitSalesCost of Goods SoldSelling and AdministrativeTotal Controllable Direct Fixed CostsVariable CostsTotal Variable CostsControllable MarginContribution Margin										FavorableUnfavorableNeither Favorable nor Unfavorable
SalesSelling and AdministrativeControllable MarginVariable CostsTotal Variable CostsControllable Direct Fixed CostsCost of Goods SoldTotal Controllable Direct Fixed CostsContribution MarginGross Profit										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsControllable MarginContribution MarginGross ProfitCost of Goods SoldVariable CostsSalesSelling and AdministrativeTotal Variable CostsControllable Direct Fixed Costs
Controllable MarginTotal Variable CostsControllable Direct Fixed CostsTotal Controllable Direct Fixed CostsGross ProfitVariable CostsSelling and AdministrativeCost of Goods SoldContribution MarginSales										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsContribution MarginSalesSelling and AdministrativeCost of Goods SoldGross ProfitVariable CostsTotal Variable CostsControllable MarginControllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsSelling and AdministrativeTotal Variable CostsSalesControllable MarginVariable CostsGross ProfitContribution MarginCost of Goods SoldControllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
SalesCost of Goods SoldTotal Controllable Direct Fixed CostsTotal Variable CostsSelling and AdministrativeControllable Direct Fixed CostsContribution MarginGross ProfitVariable CostsControllable Margin		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
ROI			%			%			%	FavorableUnfavorableNeither Favorable nor Unfavorable

Home Division Responsibility Report For the Year Ended December 31, 2020 Different Favorabl Unfavoral Neither Favo nor Unfavor Budget Actual > (2) Variable cost of goods sold is decreased by 7% Average operating assets are decreased by 20.0% Sales are increased by $200,000, and this increase is expected to increase contribution margin by $86,000. (3) % e Textbook and Media Home Division Responsibility Report For the Year Ended December 31, 2020 Different Favorabl Unfavoral Neither Favo nor Unfavor Budget Actual > (2) Variable cost of goods sold is decreased by 7% Average operating assets are decreased by 20.0% Sales are increased by $200,000, and this increase is expected to increase contribution margin by $86,000. (3) % e Textbook and Media