Part A Complete the following (i) actual, (ii) variance, and (iii) budget calculations for the Home Division of Optimus Co. based on the information given in the Excel template: Sales VC Selling Total CM COS Selling Net return ROI

Part B

Based on the calculations you completed in Part A: Comment on manager performance in relation to the forecast Comment on recommendations for management in relation to budgets

Part C Complete the following calculations for the Home Division of Optimus Co. based on the information given in the Excel template: Current Actual Return

Current actual return Increase / decrease ROI Current Return Current return Current assets ROI = Return on Investment d Current Sales Increase / decrease - Consider the external environment effects from increase or decrease on the sales volume. The recommendation to management should include effects on profitability, customer behaviour and employees morale, with consideration to the current external factor of labor shortage. Fixed Costs Net Income RO

Prepare responsibility report P14-5 Optimus Company manufactures a variety of tools and industrial equipment. The for an investment center, and company operates through three divisions. Each division is an investment center. Operatcompute ROI. ing data for the Home Division for the year ended December 31, 2017, and relevant budget (LO4),E data are as follows. Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Home Division Fixed Cost cos Selling Total \begin{tabular}{|r|r} 170,000 & 170,000 \\ \hline 80,000 & 80,000 \\ \hline 250,000 & 250,000 \\ \hline \end{tabular} Net return Investment ROI 18.0%1.5%16.5%