Question: this is a multipart question, sorry its so long. The Camping Division of XGCompany is operated as a profit center. Sales for the division were






The Camping Division of XGCompany is operated as a profit center. Sales for the division were budgeted for 2020 at $692000. The only variable costs budpeted for the division were cost of goods sold ($334,000) and selling and administrative ($48,000). Foxed costs were budgeted at $78,000 for cost of goods sold, $70,000 for selling and administrative, and $68,000 for noncontrollable fired costs. Actual results for these items were: Assume the division is an investment center, and average operatingassets were $1,000000. The noncontrollable fucid costs are controllable at the irmestment center level. Compute FOI. (Round answer to 2 docimal ploces es 15.2556) Upon further analysis XG Compary determined that if it committed to a 12 month advertising campaign costing 519,000 , it could increase budpeted sales by 25%. Variable costs also will increase by 25%. Foyed cost of goods sold would remain at 578,000 and selling and administrathe expenses increases by the $19.000 cost of this contract to a total of $89,000. Noncontrollable fived costs would remain at $68,000. This plan resulted in the following actual results. Preparea responsibility report for the Comping Division based on then rewprojections Did the increase in advertising benefit the company? Theincrease in advertising the company. Assume the division is an irwestment center, and average operating assets were 51,000,000. The noncontrollable fixed costs are Returnon imvestment Indicate the impact of the change on ROI. Round antwer to 2 declmal places es. 15.25\%. Return on investment
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