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		680,000		54,000	unfavorable
Variable selling and administrative expenses		124,000		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
SalesCost of Goods SoldSelling and AdministrativeContribution MarginControllable MarginGross ProfitTotal Controllable Direct Fixed CostsVariable CostsControllable Direct Fixed CostsTotal Variable Costs		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
Contribution MarginTotal Controllable Direct Fixed CostsCost of Goods SoldSalesControllable Direct Fixed CostsVariable CostsTotal Variable CostsControllable MarginSelling and AdministrativeGross Profit
Total Controllable Direct Fixed CostsContribution MarginSalesTotal Variable CostsVariable CostsControllable Direct Fixed CostsSelling and AdministrativeControllable MarginCost of Goods SoldGross Profit										FavorableUnfavorableNeither Favorable nor Unfavorable
SalesContribution MarginTotal Variable CostsControllable MarginGross ProfitTotal Controllable Direct Fixed CostsCost of Goods SoldSelling and AdministrativeControllable Direct Fixed CostsVariable Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Cost of Goods SoldContribution MarginGross ProfitSelling and AdministrativeSalesControllable MarginControllable Direct Fixed CostsTotal Variable CostsTotal Controllable Direct Fixed CostsVariable Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Gross ProfitContribution MarginSelling and AdministrativeVariable CostsSalesCost of Goods SoldControllable MarginControllable Direct Fixed CostsTotal Variable CostsTotal Controllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
SalesVariable CostsTotal Controllable Direct Fixed CostsControllable MarginContribution MarginSelling and AdministrativeControllable Direct Fixed CostsCost of Goods SoldGross ProfitTotal Variable Costs
Gross ProfitControllable MarginVariable CostsControllable Direct Fixed CostsSalesCost of Goods SoldSelling and AdministrativeTotal Variable CostsContribution MarginTotal Controllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Selling and AdministrativeVariable CostsCost of Goods SoldTotal Controllable Direct Fixed CostsControllable MarginControllable Direct Fixed CostsTotal Variable CostsGross ProfitContribution MarginSales										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Variable CostsControllable MarginGross ProfitVariable CostsControllable Direct Fixed CostsSalesCost of Goods SoldSelling and AdministrativeContribution MarginTotal Controllable Direct Fixed Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
SalesGross ProfitTotal Controllable Direct Fixed CostsContribution MarginSelling and AdministrativeControllable MarginTotal Variable CostsVariable CostsCost of Goods SoldControllable Direct Fixed Costs		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
ROI			%			%			%	FavorableUnfavorableNeither Favorable nor Unfavorable