The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $903,000. The only variable costs budgeted for the division were cost of goods sold ($443,000) and selling and administrative ($64,000). Fixed costs were budgeted at $100,000 for cost of goods sold, $90,000 for selling and administrative, and $75,000 for noncontrollable fixed costs. Actual results for these items were:

Sales		$885,000
Cost of goods sold
Variable		414,000
Fixed		108,000
Selling and administrative
Variable		65,000
Fixed		75,000
Noncontrollable fixed		90,000

Prepare a responsibility report for the Sports Equipment Division for 2020. (List variable costs before fixed costs.)

HARRINGTON COMPANY Sports Equipment Division Responsibility Report For the Year Ended December 31, 2020
	Budget		Actual		Difference
					Favorable Unfavorable Neither Favorable nor Unfavorable
Noncontrollable Fixed CostsTotal Variable CostsContribution MarginCost of Goods SoldControllable Fixed CostsGross ProfitControllable MarginVariable CostsSalesSelling and AdministrativeTotal Noncontrollable Fixed CostsTotal Controllable Fixed Costs	$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable
Total Variable CostsControllable MarginControllable Fixed CostsContribution MarginCost of Goods SoldSelling and AdministrativeGross ProfitVariable CostsTotal Controllable Fixed CostsSalesNoncontrollable Fixed CostsTotal Noncontrollable Fixed Costs
Controllable Fixed CostsTotal Noncontrollable Fixed CostsGross ProfitTotal Variable CostsCost of Goods SoldControllable MarginSelling and AdministrativeSalesNoncontrollable Fixed CostsVariable CostsTotal Controllable Fixed CostsContribution Margin						Neither Favorable nor UnfavorableFavorableUnfavorable
Selling and AdministrativeContribution MarginTotal Variable CostsTotal Controllable Fixed CostsSalesTotal Noncontrollable Fixed CostsNoncontrollable Fixed CostsGross ProfitControllable Fixed CostsCost of Goods SoldVariable CostsControllable Margin						UnfavorableNeither Favorable nor UnfavorableFavorable
Noncontrollable Fixed CostsControllable MarginTotal Variable CostsVariable CostsSalesContribution MarginGross ProfitControllable Fixed CostsCost of Goods SoldSelling and AdministrativeTotal Controllable Fixed CostsTotal Noncontrollable Fixed Costs						UnfavorableNeither Favorable nor UnfavorableFavorable
Controllable MarginGross ProfitControllable Fixed CostsTotal Controllable Fixed CostsTotal Variable CostsNoncontrollable Fixed CostsContribution MarginTotal Noncontrollable Fixed CostsCost of Goods SoldSelling and AdministrativeSalesVariable Costs						UnfavorableFavorableNeither Favorable nor Unfavorable
Gross ProfitContribution MarginSalesNoncontrollable Fixed CostsTotal Controllable Fixed CostsControllable Fixed CostsVariable CostsSelling and AdministrativeControllable MarginCost of Goods SoldTotal Noncontrollable Fixed CostsTotal Variable Costs
Gross ProfitSelling and AdministrativeNoncontrollable Fixed CostsControllable MarginVariable CostsContribution MarginTotal Noncontrollable Fixed CostsTotal Controllable Fixed CostsCost of Goods SoldSalesTotal Variable CostsControllable Fixed Costs						UnfavorableFavorableNeither Favorable nor Unfavorable
Noncontrollable Fixed CostsGross ProfitControllable MarginTotal Controllable Fixed CostsTotal Variable CostsVariable CostsContribution MarginTotal Noncontrollable Fixed CostsControllable Fixed CostsSalesSelling and AdministrativeCost of Goods Sold						UnfavorableNeither Favorable nor UnfavorableFavorable
Variable CostsControllable Fixed CostsSelling and AdministrativeControllable MarginTotal Controllable Fixed CostsSalesTotal Variable CostsNoncontrollable Fixed CostsGross ProfitContribution MarginTotal Noncontrollable Fixed CostsCost of Goods Sold						UnfavorableNeither Favorable nor UnfavorableFavorable
Total Noncontrollable Fixed CostsControllable Fixed CostsGross ProfitSelling and AdministrativeContribution MarginTotal Variable CostsNoncontrollable Fixed CostsVariable CostsControllable MarginTotal Controllable Fixed CostsSalesCost of Goods Sold	$		$		$	FavorableNeither Favorable nor UnfavorableUnfavorable

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Question Part Score

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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 using the actual amounts. (Round ROI to 1 decimal place, e.g. 1.5.)

Return on investment

%