Average operating actets for the year for the Home Division were $()/()$$$2,000,000,$ which was also the budgeted amount.

$($c$)$

Compute the expected ROI in $2027$ for the Home Division, assuming the following independent changes to actual data. $($Round ROI to $2$ decimal places, e$.$g$.(1\mathrm{.}57)/(\%).)$

The expected ROI

$(1)$ Variable selling and administrative expenses are decreased by $()/((4/\%/).)$

$(2)$ Average operating assets are decreased by $()/((10/\%/).)$

$(3)$ Sales are increased by $()/((/$$ $200,000/)),$ and this increase is expected to increase contribution margin by $()/((/$$ $80,000/).)$

$\backslash$table$[[,$Actual$],[,$Comparison with Budget$],[,$Sales$],[$$$1400000,],[$$$100000,$favorable$],[$Variable cost of goods sold,$665000],[,45000],[$unfavorable$,$Variable selling and administrative expenses$],[125000,],[25000,$unfavorable$],[$Controllable fixed cost of goods sold,$170000],[$On target,$],[,$Controllable fixed selling and administrative expenses$],[80000,$On target$],[,]]$

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

OPTIMUS COMPANY

Home Division

Responsibility Report

For the Year Ended December $31,2027($c$)$

Compute the expected ROI in $2027$ for the Home Division, assuming the following independent changes to actual data. $($Round ROI to $2$ decimal places, e$.$g$.1\mathrm{.}57\backslash \%.)$

The expected ROI

$(1)$ Variable selling and administrative expenses are decreased by $\backslash (4\backslash \%\backslash ).$

$(2)$ Average operating assets are decreased by $\backslash (10\backslash \%\backslash ).$

$(3)$ Sales are increased by $\backslash (\backslash$$ $200,000\backslash ),$ and this increase is expected to increase contribution margin by $\backslash (\backslash$$ $80,000\backslash ).$