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Upon further analysis, LM Company determined that if it committed to a 12 month advertising campaign costing $16,000, it could increase budgeted sales by 25%.

Upon further analysis, LM Company determined that if it committed to a 12 month advertising campaign costing $16,000, it could increase budgeted sales by 25%. Variable costs also will increase by 25% Fixed cost of goods sold would remain at $77,000 and selling and administrative expenses increases by the $16,000 cost of this contract to a total of $86,000. Noncontrollable fixed costs would remain at $70,000. This plan resulted in the following actual results: Sales $860,500 Cost of goods sold Variable 427,500 Fixed 82,000 Selling and administrative. Variable 55.500 Fixed 69.000 Noncontrollable fixed 70,000 Prepare a responsibility report for the Camping Division based on the new projections LM Company Camping Division Responsibility Report For the Ya E December 31, 2020 Difference Budget Actual 862500 $ 860500 $ -2000 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Unfavorable 432500 427500 5000 Favorable 58125 55500 2625 Favorable 490625 483000 7625 Favorable 371875 277500 5625 Farable 73000 2000 3000 Cfa 84000 A9000 17000 143000 211000 12000 216500 ANDR 208875 $ 226500 $ 17625 Favorable Did the increase in advertising benefit the company? The increase in advertising benefited the company. (c2) Attempts: 1 of 1 used 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. (Mound answer to 2 decimal places eg 15.25%) Return on investment Indicate the impact of the change on RO1 Bound anwer to 2 decimal places, ea 15.25%) Return on investment

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