Question
The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $894,000. The only
The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $894,000. The only variable costs budgeted for the division were cost of goods sold ($442,000) and selling and administrative ($60,000). Fixed costs were budgeted at $100,000for cost of goods sold, $94,000for selling and administrative, and $72,000for noncontrollable fixed costs. Actual results for these items were:
Sales$887,000
Cost of goods soldVariable410,000Fixed107,000
Selling and administrativeVariable65,000Fixed72,000
Noncontrollable fixed89,000
First question is I need the responsibility report for the Sports Equipment Division for 2020. 2nd question is assume the division is an investment center and average operating assets were 1,180,200. The non controllable fixed costs are controllable at the investment center level. What is the return on investment?
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