The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the...

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The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2014 at $903,810. The only variable costs budgeted for the division were cost of goods sold ($441,840) and selling and administrative ($64,880). Fixed costs were budgeted at $102,210 for cost of goods sold, $89,910 for selling and administrative, and $70,090 for noncontrollable fixed costs. Actual results for these items were: Sales $886,280 Cost of goods sold Variable 411,830 Fixed 108,460 Selling and administrative Variable 60,720 Fixed 67,800 Noncontrollable fixed 94,500 .. 70.000 TI Assume the division is an investment center, and average operating assets were $1,072,800. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. (Round ROI to 1 decimal place, e.g. 1.5%.) Sales Variable Costs Cost of Goods Sold Selling and Administrative Total Variable Costs Contribution Margin Controllable Fixed Costs Cost of Goods Sold Selling and Administrative Total Controllable Fixed Costs Controllable Margin Budget HARRINGTON COMPANY Sports Equipment Division Responsibility Report 2014 903810 441840 64880 506720 397090 102210 89910 192120 204970 Actual 886280 411830 60,720 472550 413730 108,460 67,800 176260 237470 Difference Favorable (F) Unfavorable (U) Neither Favorable nor Unfavorable (N) 17530 U 30010 F 4160 F + 34170 F 16640 F + 6250 U 22110 F + 15860 F 32500 The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2014 at $903,810. The only variable costs budgeted for the division were cost of goods sold ($441,840) and selling and administrative ($64,880). Fixed costs were budgeted at $102,210 for cost of goods sold, $89,910 for selling and administrative, and $70,090 for noncontrollable fixed costs. Actual results for these items were: Sales $886,280 Cost of goods sold Variable 411,830 Fixed 108,460 Selling and administrative Variable 60,720 Fixed 67,800 Noncontrollable fixed 94,500 .. 70.000 TI Assume the division is an investment center, and average operating assets were $1,072,800. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. (Round ROI to 1 decimal place, e.g. 1.5%.) Sales Variable Costs Cost of Goods Sold Selling and Administrative Total Variable Costs Contribution Margin Controllable Fixed Costs Cost of Goods Sold Selling and Administrative Total Controllable Fixed Costs Controllable Margin Budget HARRINGTON COMPANY Sports Equipment Division Responsibility Report 2014 903810 441840 64880 506720 397090 102210 89910 192120 204970 Actual 886280 411830 60,720 472550 413730 108,460 67,800 176260 237470 Difference Favorable (F) Unfavorable (U) Neither Favorable nor Unfavorable (N) 17530 U 30010 F 4160 F + 34170 F 16640 F + 6250 U 22110 F + 15860 F 32500

Answer rating: 100% (QA)

First compute the actual profit as shown below Actual profit Actu... View the full answer