Please do part B Exercise 22-16 (Part Level Submission) The Sports Equipment Div

Question

Please do part B

Exercise 22-16 (Part Level Submission) The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2017 at $897,610. The only variable costs budgeted for the division were cost of goods sold ($440,660) and selling and administrative ($64,770). Fixed costs were budgeted at $101,230 for cost of goods sold, $90,960 for selling and administrative, and $72,470 for noncontrollable fixed costs. Actual results for these items were Sales $883,660 Cost of goods sold 414,070 105,050 Variable Fixed Selling and administrative 65,080 72,370 91,230 Variable Fixed Noncontrollable fixed

Explanation / Answer

Return on investment = ($227,090 - $91,230) / $1,155,400

Return on investment = 11.76%

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