Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1,401,000 680,000 124,000 170,000 87,000 Comparison with Budget $101,000 favorable 55,000 unfavorable 25,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) (1) Variable cost of goods sold is decreased by 5%. (2) Average operating assets are decreased by 20.0%. (3) Sales are increased by $201,000, and this increase is expected to increase contribution margin by $86,000. The expected ROI % % %

Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1,401,000 680,000 124,000 170,000 87,000 Comparison with Budget $101,000 favorable 55,000 unfavorable 25,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) (1) Variable cost of goods sold is decreased by 5%. (2) Average operating assets are decreased by 20.0%. (3) Sales are increased by $201,000, and this increase is expected to increase contribution margin by $86,000. The expected ROI % % %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

See similar textbooks

Related questions

Q: Natarajan, Inc. had the following operating segments, with the in Segment Expenses $ 650,000…

A: We must contrast the segment revenues with the sum of the revenues of all other segments in order to…

Q: What is a user view?

A: Database Management: Database management refers to management of databases held within an…

Q: Denzel Brooks opens a Web consulting business called Venture Consultants and completes the following…

A: Record the transactions in the T accounts:

Q: How XBRL is different from inline XBRL? What challenges do you see in the implementation of XBRL?

A: XBRL: In short, XBRL stands for extensible Business Reporting Language, and it is a software…

Q: What is meant by Authorized and issued captial?

A: Meaning of Authorised capital stock:Authorised stock refers to the maxinum number of preferred…

Q: Factors involved in communicating useful information is are: Multiple Choice Process by which the…

A: Effective communication of useful information involves several factors, which are interrelated and…

Q: Bramble Corp. is a retailer operating in Calgary, Alberta, Bramble Corp. uses the perpetual…

A: Lets understand the basics.There are various methods followed for calculating cost of goods sold and…

Q: 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for…

Q: Source documents ________.A. are input devicesB. are output devicesC. do not have to be on paperD.…

A: Accounting is the art of classifying, recording, summarizing, and interpreting financial…

Q: Oriole Company expects to produce 1,260,000 units of product XX in 2022. Monthly production is…

A: Variable Cost :— It is the cost that changes with change in activity of cost driver. Variable cost…

Q: Is there an excel table showing how to use functions?

A: The present worth of a project is a very important term for the selection and rejection decision of…

Q: How is the access control list approach different from RBAC?

Q: Define deferred call

A: Bonds are fixed-income securities issued by a company or government to raise capital from the…

Q: 4) Use this week's activity to write the formula for placing $300 in a 7.5% account compounded…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Question

Please do not give solution in image format thanku

Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each
division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data
are as follows.
Sales
Variable cost of goods sold
Variable selling and administrative expenses
Controllable fixed cost of goods sold
Controllable fixed selling and administrative expenses
Actual
$1,401,000
680,000
124,000
170,000
87,000
Comparison with Budget
$101,000 favorable
55,000 unfavorable
25,000 unfavorable
On target
On target
Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount.

Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI
to 2 decimal places, e.g. 1.57%.)
(1) Variable cost of goods sold is decreased by 5%.
(2) Average operating assets are decreased by 20.0%.
(3) Sales are increased by $201,000, and this increase is expected to increase contribution margin
by $86,000.
The expected ROI
%
%
%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Return on Investment:

VIEW

Step 2: ROI if Variable cost of goods sold is decreased by 5%:

VIEW

Step 3: ROI If Average operating assets are decreased by 20%

VIEW

Step 4: ROI if Sales are increased by $201,000

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Classify each of the following actions as either being associated with the financial accounting information system (FS) or the cost management information system (CMS): a. Determining the total compensation of the CEO of a public company b. Issuing a quarterly earnings report c. Determining the unit product cost using TDABC d. Calculating the number of units that must be sold to break even e. Preparing a required report for the SEC f. Preparing a sales budget g. Using cost and revenue information to decide whether to keep, or drop, a product line h. Preparing an annual statement of financial position that conforms to generally accepted accounting principles (GAAP) i. Using cost and revenue information to decide whether to invest in a new production system or not j. Reducing costs by improving the overall quality of a product k. Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the likelihood of bankruptcy l. Using a public companys financial statements to decide whether or not to buy its stock
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
please help me
Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $100,000 favorable Variable cost of goods sold 680, 000 56,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 169,000 On target Controllable fixed selling and administrative expenses 83,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57% .) OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2020
Bonita Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,399,000 $101,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 124,000 25,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.) BONITA COMPANYHome DivisionResponsibility ReportFor the Year Ended…
Bonita Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,399,000 $101,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 124,000 25,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) The expected ROI (1) Variable cost of goods sold is…
Blue-Pool Company is an electric utility which has two service departments, Accounting and Maintenance. It also has two operating departments, Generation and Transmission. Maintenance Department costs are allocated based on maintenance hours of service. Accounting Department costs are allocated based on accounting hours of service provided. Budgeting costs and other data for the following year are as follows: Accounting Maintenance Generation Transmission Budgeted costs R100 000 R200 000 R600 000 R400 000 Maintenance hours of service 600 7 200 4 800 Accounting hours of service 500 2 000 4 500 3 500 The step method is used to allocate service department costs, with the accounting department being allocated first. Calculate the amount of accounting department costs that needs to be allocated to the generation department. A. R42 860 B. R38 000 C. R57 143 D. R45…
9997
For the year ending December 31, 2020, Cobb Company accumulates the following data for the Plastics Division which it operates as an investment center contribution margin-$782.200 budget, $790.220 actual controllable feed costs-$297 400 budget $303,400 actual Average opera assets for the year were $2.020.000 Prepare a responsibility report for the Plastics Division beginning with contribution margin for the year ending December 31, 2020 (Round ROI to 1 decimal place, eg 1.5%) Budget COBB COMPANY Plastics Division Responsibility Report For the Year Ended December 31, 2020 Actual
Question : SMAN Company manufactures two products M1 and Z1. Its sales department has three divisions: Salalah, Raysut and Mirbat. Initial estimates for the sales budgets for the year ending 31 December 2021 which are based on the assessments of the divisional executives are as follows; Product M1 : Salalah 45,000 units: Raysut 110,000 units and Mirbat: 25,000 units Product Z1: Salalah 70,000 units: Raysut 82,000 units and Mirbat:0 Sales Prices: M1: 3 OMR and Z1= 4 OMR in all areas. Arrangements are made for the extensive advertising of product M1 and Z1 and it is estimated that Salalah division sales will increase by 30,000 units. Arrangements are also made to advertise and distribute product z1 in the Mirbat area in the second half of 2021 when sales are expected to be 100,000 units. Since the estimated sales of the Raysut division represented an unsatisfactory target, it is agreed to increase both the estimates by 15 %. Prepare a sales budget for the year to 31…
please help me with full working
Gg.77.