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Problem 22-5A (Part Level Submission) Optimus Company manufactures a variety of tools and industrial equipment. The co pany operates rou h ree son Operating data
Problem 22-5A (Part Level Submission) Optimus Company manufactures a variety of tools and industrial equipment. The co pany operates rou h ree son Operating data for the Home Division for the year ended December 31, 2017, and relevant budget data are as follows c di son is a investment cente Actual Comparison with Budget Sales Varlable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses 1,401,000 101,000 favorable 55,000 unfavorable 26,000 unfavorable 675,000 125,000 169,000 On target 79,000On target Average operating assets for the year for the Home Division were $2,001,000 which was also the budgeted amount. (c) Compute the expected ROI in 2017 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 1 decimal place, e.g. 1.5.) The expected ROI (1) Variable cost of goods sold is decreased by 5%. (2) Average operating assets are decreased by 11%. (3) Sales are increased by $199,000, and this Increase is expected to Increase contribution margin by $84,000. Click if you would like to Show Work for this question: Open Show Work
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