ycconuu bou 25.SA (LO 4) Optimus Company manufactures a variety of tools and industrial equipment. The com- any operates through three divisions. Each division is an investment center. Operating data...

Extracted text: ycconuu bou 25.SA (LO 4) Optimus Company manufactures a variety of tools and industrial equipment. The com- any operates through three divisions. Each division is an investment center. Operating data for the ome Division for the year ended December 31, 2020, and relevant budget data are as follows. Dob Actual Comparison with Budget $1,400,000 665,000 125,000 170,000 $100,000 favorable 45,000 unfavorable 25,000 unfavorable On target Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative On target expenses Average operating assets for the year for the Home Division were $2,000,000 which was also the bud- geted amount. Instructions a. Prepare a responsibility report (in thousands of dollars) for the Home Division. b. Evaluate the manager's performance. Which items will likely be investigated by top management? c. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. 1. Variable cost of goods sold is decreased by 5%. 2. Average operating assets are decreased by 10%. 3. Sales are increased by $200,000, and this increase is expected to increase contribution margin by $80,000. P25.6A (LO 3) Durham Company uses a responsibility reporting system. It has divisions in Denve Seatle, and San Diego. Each division has three production departments: Cutting, Shaping, and Finis! ing The responsibility for each department rests with a manager who reports to the division productic manager. Each division manager reports to the vice president of production. There are also vice pre dents for marketing and finance. All vice presidents report to the president. In January 2020, controllable actual and budget manufacturing overhead ments and divisions were as shown below