Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Sports Equipment Division of Riverbed Company is operated as a profit center. Sales for the division were budgeted for 2022 at $954,000. The only
The Sports Equipment Division of Riverbed Company is operated as a profit center. Sales for the division were budgeted for 2022 at $954,000. The only variable costs budgeted for the division were cost of goods sold ($466,400) and selling and administrative ($63,600). Fixed costs were budgeted at $106,000 for cost of goods sold, $95,400 for selling and administrative, and $74,200 for noncontrollable fixed costs. Actual results for these items were: Sales $932,800 Cost of goods sold Variable 432,480 Fixed 111,300 Selling and administrative Variable 64,660 Fixed 69.960 Noncontrollable fixed 89,040 Budget Actual > $ > -/5 III Budget Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable $ Assume the division is an investment center, and average operating assets were $1.060,000. The noncontrollable fixed costs are controllable at the investment center level. Compute Rol using the actual amounts. (Round ROI to 1 decimal place, eg. 1.5%) Return on investment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started