Please do not give solution in image format thanku (c)Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (RoundROI to 2 decimal places, e.g. 1.57%)(1)(2)(3)Variable cost of goods sold is decreased by 7%,Average operating assets are decreased by 20,0%.Sales are increased by $201.000, and this increase is expected to increasecontribution margin by $84.000.eTextbook and MediaSave for LaterThe expected ROIAttempts: 0 of 3 used%Submit Answersese Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Eachdivision is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budgetdata are as follows.SalesVariable cost of goods soldVariable selling and administrative expensesControllable fixed cost of goods soldControllable fixed selling and administrative expensesActual$1,399,000680,000125,000169,00081,000Comparison with Budget$100,000 favorable56,000 unfavorable25,000 unfavorableOn targetOn targetAverage operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount.

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(c) 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) (2) (3) Variable cost of goods sold is decreased by 7%, Average operating assets are decreased by 20.0%. Sales are increased by $201.000, and this increase is expected to increase contribution margin by $84.000. eTextbook and Media Save for Later The expected ROI Attempts: 0 of 3 used % ** Submit Answer

(c) 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) (2) (3) Variable cost of goods sold is decreased by 7%, Average operating assets are decreased by 20.0%. Sales are increased by $201.000, and this increase is expected to increase contribution margin by $84.000. eTextbook and Media Save for Later The expected ROI Attempts: 0 of 3 used % ** Submit Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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