Business, 26.08.2020 03:01 jasmincorrea45

Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Actual Comparison with Budget
Sales $1,400,000 $101,000 favorable
Variable cost of goods sold 680,000 56,000 unfavorable
Variable selling and administrative expenses 124,000 24,000 unfavorable
Controllable fixed cost of goods sold 171,000 On target
Controllable fixed selling and administrative expenses 81,000 On target

Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount.

Required:
a. Prepare a responsibility report (in thousands of dollars) for the Home Division.
b. Evaluate the manager's performance. Which items will likely be investigated by top management?
c. Compute the expected ROI in 2017 for the Home Division, assuming the following C independent changes to actual data.

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Optimus Company manufactures a variety of tools and industrial equipment. The company operates throu...

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