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 bu data are as follows. Actual Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses $1,400,000 670,000 124,000 171,000 83,000 Comparison with Budget $ 101,000 favorable 56,000 unfavorable 25,000 unfavorable On target 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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales 1299000 1400000 101000 Favorable Variable Costs Cost of Goods Sold 614000 670000 56000 Unfavorable Selling and Administrative 99000 124000 25000 Unfavorable 1 Total Variable Costs 713000 794000 81000 Unfavorable Contribution Margin 586000 606000 20000 Favorable Controllable Direct Fixed Costs Cost of Goods Sold 171000 171000 Neither Favorable nor Unfavorable Selling and Administrative 83000 830001 0 Neither Favorable nor Unfavorable T! 1 Total Controllable Direct Fixed Costs 254000 254000 Neither Favorable nor Unfavorable Controllable Margin 332000 352000 20000 Favorable $ ROI 16.6% 17.6 % 1.0 % Favorable 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 $84,000. %