Question: please solve. this is all one problem The Camping Division of CM Company is operated as a profit center. Sales for the division were budgeted






The Camping Division of CM Company is operated as a profit center. Sales for the division were budgeted for 2020 at $714,000. The only variable costs budgeted for the division were cost of goods sold ($340,000) and selling and administrative ($46,000), Fixed costs were budgeted at $78,000 for cost of goods sold, $72,000 for selling and administrative, and $71,000 for noncontrollable fixed costs. Actual results for these items were: Preparea responsibility report for the Camping Division for 2020 . CM Company Camping Division Responslbillty Report Budget Unfayorable Neither Favorable nor Unfavorable Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROL. (Round onswer to 2 decimal places, eg. 15.25\%) Return on imestment Upon further analysis, CM Company determined that if it committed to a 12 month advertising campaign costing $18,000, it could increase budgeted sales by 25%. Variable costs also will increase by 25%. Fixed cost of goods sold would remain at $78,000 and selling and administrative expenses increases by the $18,000 cost of this contract to a total of $90,000. Noncontrollable fixed costs would remain at $71,000. This plan resulted in the following actual results: Prepare a responsibility report for the Camping Division based on the new projections. Did the increase in advertising benefit the company? The increase in advertising the company. Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable foced costs are controllable at the investment center level. Compute ROI. (Round answer to 2 decimal places, eg. 15.25.) Return on investment Indicate the impact of the change on RO1. (Round answer to 2 decimal ploces, ey. 15.25\%) Return on imyestment
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