Timmons Company has two divisions that are operated as investment centers:

Timmons Company has two divisions that are operated as investment centers:
Sales.............................................9,000,000
Variable costs...................................3,600,000
Fixed costs......................................3,000,000
Instructions
1) Compute the missing amounts using the ROI formula for the divisions of Timmons Company.
2) If Lace Division is a cost center, which of the above numbers would not be shown on the Lace Division's performance report?
3) If Lace Division is a profit center, what would you need to know about the above information in order to prepare the Lace Division's performance report?
4) In the space below prepare a profit center performance report assuming that Lace's non-controllable fixed cost = $2,000,000.

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Black Div. Greer Div. Sales Controllable margin Average operating assets Return on investment Controllable fixed costs Contribution margin $2,000,000 $3,000,000 $6,000,000 10% $200,000 $900,000 S150,000 S990,000