The Camping Division of MD Company is operated as a profit center. Sales for the division were budgeted for 2020 at $700.000. The only variable costs budgeted for the division were cost of goods sold ($334,000) and selling and administrative ($46,000). Fixed costs were budgeted at $75,000 for cost of goods sold, $70,000 for selling and administrative, and $68,000 for noncontrollable fixed costs. Actual results for these items were: Sales $678,000 Cost of goods sold Variable 309,000 Fixed 78,000 Selling and administrative Variable 47,000 Fixed 51,000 Noncontrollable fixed 68,000 Prepare a responsibility report for the Camping Division for 2020. MD Company Camping Division Responsibility Report Budget Actual 12:40 PM Prepare a responsibility report for the Camping Division for 2020. MD Company Camping Division Responsibility Report Budget Actual $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable S Assume the division is an investment center, and average operating assets were $1.000.000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROL (Round answer to 2 decimal places, eg. 15.25%) Return on investment Upon further analysis, MD Company determined that if it committed to a 12 month advertising campaign costing $16.000, it could increase budgeted sales by 25%, Variable costs also will increase by 25% Fixed cost of goods sold would remain at $75,000 and selling and administrative expenses increases by the $16,000 cost of this contract to a total of $86.000. Noncontrollable fixed costs would remain at $68.000 This plan resulted in the following actual results: Sales $873,000 Upon further analysis, MD Company determined that if it committed to a 12 month advertising campaign costing $16.000, it could increase budgeted sales by 25% Variable costs also will increase by 25% Fixed cost of goods sold would remain at $75,000 and selling and administrative expenses increases by the $16.000 cost of this contract to a total of $86,000. Noncontrollable fixed costs would remain at $68.000. This plan resulted in the following actual results: Sales Cost of goods sold Variable Fixed Selling and administrative $873,000 412,500 78.000 Variable 54.500 Fixed 70,000 Noncontrollable fixed 68,000 Prepare a responsibility report for the Camping Division based on the new projections. MD Company Camping Division Responsibility Report Budget Actual 1281 PM Prepare a responsibility report for the Camping Division based on the new projections. MD Company Camping Division Responsibility Report Budget Actual $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable > > S P 1 Did the increase in advertising benefit the company? The increase in advertising the company. Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. (Round answer to 2 decimal places, e.g. 15.25%) Return on investment % Indicate the impact of the change on ROI. (Round answer to 2 decimal places, e.g. 15.25%) Return on investment by %