Reference no: EM13576086

The Sports Equipment Division of Brandon McCarthy Company is operated as a profit center. Sales for the division were budgeted for 2008 at $900,000.The only variable costs budgeted for the division were cost of goods sold and selling and administrative. Fixed costs were budgeted at $100,000 for cost of goods sold, $90,000 for selling and administrative and $70,000 for noncontrollable fixed costs. Actual results for these items were;

• Sales $880,000
• Cost of goods sold
• Variable 409,000
• Fixed 105,000
• Selling and administrative
• Variable 61,000
• Fixed 67,000
• Noncontrollable fixed 80,000

Prepare a responsibility report for the Sports Equipment Division for 2008.

• BRANDON McCARTHY COMPANY
• Sports Equipment Division
• Responsibility Report
• 2008
• Budget

• Actual
• Difference
• Sales $ $ $
• Variable costs
• Cost of goods sold
• Selling and administrative

Total

• Contribution margin
• Controllable fixed costs
• Cost of goods sold
• Selling and administrative

Assume the division is an investment center, and average operating assets were $1,000,000. Compute ROI.