Class Activity Ch 10.0 References Mallings Review view ARDE Aabccde A- A- . ABCD Alec ay 1 huma Hocina Heading 2 P10-SA Optimus Company manufactures a variety of tools and industrial equipment. The Prepare responsibility report company operates through three divisions. Each division is an investment center. Operat- for dit investment center, ing data for the Home Division for the year ended December 31, 2017, and relevant budget and compute ROL data are as follows (L04 On target Actual Comparison with Budget Sales $1,400,000 $100,000 favorable Variable cost of goods sold 665,000 45,000 unfavorable Variable seling and administrative expenses 125.000 25,000 unfavorable Controllable fixed cost of goods sold 170,000 Controllable fixed selling and administrative expenses 80,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount Instructions 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 Independent clanges to actual data (1) Variable cost of goods sold is decreased by 5 (2) henge operating assets are decreased by 10 (3) Sales are increased by $200,000, and this increases apected to increase contri bution margin by $80,000 Contemaga Budget 5330 Ahal 5380