ASSIGNMENT 7 CHAPTER 11

Question 8

For the year ended December 31, 2020, Sanjay Company accumulated the following data for the plastics division, which it operates as an investment centre: contribution margin$612,950 budgeted, $622,669 actual; controllable fixed costs$302,000 budgeted, $305,500 actual. Average operating assets for the year were $2,073,000. Prepare a responsibility report for the plastics division, beginning with the contribution margin. (Round ROI to 1 decimal place, e.g. 1.5%.)

SANJAY COMPANY Plastics Division Responsibility Report For the Year Ended December 31, 2020
								Difference
		Budget			Actual			Favourable Unfavourable Neither Favourable nor Unfavourable
Fixed CostsGross ProfitControllable MarginControllable Fixed CostsVariable CostsNet Income/(Loss)Contribution Margin		$			$			$		FavourableUnfavourableNeither Favourable nor Unfavourable
Contribution MarginFixed CostsControllable MarginControllable Fixed CostsNet Income/(Loss)Variable CostsGross Profit										FavourableUnfavourableNeither Favourable nor Unfavourable
Controllable Fixed CostsNet Income/(Loss)Controllable MarginFixed CostsGross ProfitContribution MarginVariable Costs		$			$			$		FavourableUnfavourableNeither Favourable nor Unfavourable
Return on Investment			%			%			%	FavourableUnfavourableNeither Favourable nor Unfavourable