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The Sports Equipment Division of Culver Company is operated as a prot center. Sales for the division were budgeted for 2022 at $1,044,000. The only
The Sports Equipment Division of Culver Company is operated as a prot center. Sales for the division were budgeted for 2022 at $1,044,000. The only variable costs budgeted for the division were cost of goods sold {$510,400} and selling and administrative ($69,600). Fixed costs were budgeted at $ 116,000 for cost of goods sold, $ 104,400 for selling and administrative, and $8 1,200 for noncontrollable xed costs. Actual results for these items were: Sales $1,020,800 Cost of goods sold Variable 473,280 Fixed 121,800 Selling and administrative Variable 70,760 Fixed 76,560 Noncontrollable xed 97,440 \fAssume 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 using the actual amounts. (Round R0! to 1 decimaipiace, 6.9. 1.5.}
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