The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $905,000. The only variable costs budgeted for the division were cost of goods sold ($440,000) and selling and administrative ($62,000). Fixed costs were budgeted at $102,000 for cost of goods sold, $93,000 for selling and administrative, and $74,000 for noncontrollable fixed costs. Actual results for these items were:

Sales		$884,000
Cost of goods sold
Variable		410,000
Fixed		105,000
Selling and administrative
Variable		61,000
Fixed		74,000
Noncontrollable fixed		91,000

Prepare a responsibility report for the Sports Equipment Division for 2020. (List variable costs before fixed costs.)

HARRINGTON COMPANY Sports Equipment Division Responsibility Report For the Year Ended December 31, 2020
	Budget		Actual		Difference
					Favorable Unfavorable Neither Favorable nor Unfavorable
Total Variable CostsNoncontrollable Fixed CostsControllable MarginTotal Controllable Fixed CostsContribution MarginSelling and AdministrativeGross ProfitVariable CostsControllable Fixed CostsTotal Noncontrollable Fixed CostsCost of Goods SoldSales	$		$		$	FavorableNeither Favorable nor UnfavorableUnfavorable
Cost of Goods SoldSelling and AdministrativeControllable Fixed CostsControllable MarginGross ProfitTotal Variable CostsVariable CostsTotal Controllable Fixed CostsTotal Noncontrollable Fixed CostsNoncontrollable Fixed CostsContribution MarginSales
SalesTotal Variable CostsSelling and AdministrativeNoncontrollable Fixed CostsTotal Noncontrollable Fixed CostsTotal Controllable Fixed CostsGross ProfitCost of Goods SoldControllable MarginVariable CostsContribution MarginControllable Fixed Costs						FavorableNeither Favorable nor UnfavorableUnfavorable
Total Noncontrollable Fixed CostsGross ProfitSelling and AdministrativeVariable CostsContribution MarginNoncontrollable Fixed CostsControllable Fixed CostsSalesTotal Variable CostsControllable MarginCost of Goods SoldTotal Controllable Fixed Costs						UnfavorableNeither Favorable nor UnfavorableFavorable
Total Controllable Fixed CostsVariable CostsControllable MarginNoncontrollable Fixed CostsCost of Goods SoldContribution MarginGross ProfitControllable Fixed CostsSalesTotal Variable CostsTotal Noncontrollable Fixed CostsSelling and Administrative						UnfavorableFavorableNeither Favorable nor Unfavorable
Contribution MarginNoncontrollable Fixed CostsTotal Controllable Fixed CostsCost of Goods SoldControllable MarginVariable CostsControllable Fixed CostsSelling and AdministrativeGross ProfitTotal Noncontrollable Fixed CostsSalesTotal Variable Costs						Neither Favorable nor UnfavorableFavorableUnfavorable
Total Noncontrollable Fixed CostsSalesVariable CostsTotal Controllable Fixed CostsContribution MarginCost of Goods SoldControllable Fixed CostsTotal Variable CostsControllable MarginNoncontrollable Fixed CostsSelling and AdministrativeGross Profit
Cost of Goods SoldContribution MarginTotal Noncontrollable Fixed CostsSelling and AdministrativeTotal Variable CostsVariable CostsControllable Fixed CostsSalesNoncontrollable Fixed CostsTotal Controllable Fixed CostsGross ProfitControllable Margin						FavorableUnfavorableNeither Favorable nor Unfavorable
Total Noncontrollable Fixed CostsTotal Controllable Fixed CostsControllable MarginTotal Variable CostsGross ProfitSalesSelling and AdministrativeContribution MarginCost of Goods SoldControllable Fixed CostsNoncontrollable Fixed CostsVariable Costs						Neither Favorable nor UnfavorableFavorableUnfavorable
Gross ProfitControllable Fixed CostsTotal Noncontrollable Fixed CostsVariable CostsSelling and AdministrativeCost of Goods SoldSalesNoncontrollable Fixed CostsContribution MarginControllable MarginTotal Controllable Fixed CostsTotal Variable Costs						Neither Favorable nor UnfavorableFavorableUnfavorable
Cost of Goods SoldTotal Variable CostsNoncontrollable Fixed CostsTotal Controllable Fixed CostsControllable Fixed CostsGross ProfitTotal Noncontrollable Fixed CostsSelling and AdministrativeVariable CostsSalesControllable MarginContribution Margin	$		$		$	UnfavorableFavorableNeither Favorable nor Unfavorable

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Question Part Score

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Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI using the actual amounts. (Round ROI to 1 decimal place, e.g. 1.5.)

Return on investment

%