The Sports Equipment Division of Sheridan 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

Budget Actual Difference

$ $ $

Sales

Variable costs

Cost of goods sold

Selling and administrative

Total Contribution margin

Controllable fixed costs Cost of goods sold

Selling and administrative

Total controllable fixed cost

Controllable margin

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 %