Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please do parts A, B, and C. Prepare responsibility report for an P25.5 (LO 4), E Optimus Company manufactures a variety of tools and industrial

image text in transcribed

Please do parts A, B, and C.

Prepare responsibility report for an P25.5 (LO 4), E Optimus Company manufactures a variety of tools and industrial equipment. The cominvestment center, and compute ROI. pany operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Instructions a. Controllable margin: a. Prepare a responsibility report (in thousands of dollars) for the Home Division. Budget \$330 b. Evaluate the manager's performance. Which items will likely be investigated by top management? Actual \$360 c. Compute the expected ROI in 2022 for the Home Division, assuming the following independent changes to actual data. 1. Variable selling and administrative expenses are decreased by 4%. 2. Average operating assets are decreased by 10%. 3. Sales are increased by $200,000, and this increase is expected to increase contribution margin by $80,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Investments Fixed Income Securities And Interest Rate Derivatives Volume 2

Authors: R. Venkata Subramani

1st Edition

047082591X, 978-0470825914

More Books

Students also viewed these Accounting questions