The sports equipment division of Brandon McCarthy Company is operated as a profit centre. Sales for the division were budgeted for 2016 at $900,000. The only variable costs budgeted for the division were cost of goods sold ($440,000) and selling and administrative costs ($60,000). Fixed costs were budgeted at $100,000 for cost of goods sold, $90,000 for selling and administrative costs, and $70,000 for noncontrollable fixed costs. Actual results were as follows:

Instructions
(a) Prepare a responsibility report for the sports equipment division for 2016.
(b) Assume the division is an investment centre, and average operating assets were $1 million. Calculate ROI.

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Sales Cost of goods sold $870,000 Variable Fixed 405,000 105,000 Selling and administrative costs Variable Fixed 62,000 78,000 80,000 Noncontrollable fixed costs