The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2016 at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were:
Sales cost of goods sold..................$1,175,000
Variable.........................................545,000
Fixed selling and administrative............140,000
Variable..........................................82,000
Fixed...........................................100,000
Noncontrollable fixed........................105,000
Prepare a responsibility report for the Real Estate Products Division for 2016.
Assume the division is an investment center, and average operating assets were $1,200,000.