The Sports Equipment Division of Bridgeport Company is operated as a profit center. Sales for the division were budgeted for 2022 at $774,000. The only variable costs budgeted for the division were cost of goods sold ($378,400) and selling and administrative (551,600). Fixed costs were budgeted at $86.000 for cost of goods sold, $77,400 for selling and administrative, and $60,200 for noncontrollable fixed costs. Actual results for these items were: 

 

Assume the division is an investment center, and average operating assets were $860,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI using the actual amounts.

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Sales Cost of goods sold Variable Fixed Selling and administrative Variable Fixed Noncontrollable foed $756.800 350.880 90.300 52.460 56,760 72,240 Sales Cost of goods sold Variable Fixed Selling and administrative Variable Fixed Noncontrollable foed $756.800 350.880 90.300 52.460 56,760 72,240

Answer rating: 100% (QA)

Sales Less Variable Cost Cost of Goods Sold BRIDGEPORT COMPANY Sports Equipment ... View the full answer