The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2016 at $1250000. The only variable costs budgeted for the division were cost of goods sold ($610000) and selling and administrative ($80000). Fixed costs were budgeted at $130000 for cost of goods sold $120000 for selling and administrative and $95000 for noncontrollable fixed costs. Actual results for these items were: $\begin{array}{lr}
\text { Sales } & \$ 1,175,000 \
\text { Cost of goods sold } & \
\quad \text { Variable } & 545,000 \
\text { Fixed } & 140,000\
\text { Selling and administrative } & \
\text { Variable } & 82,000\
\text { Fixed } &100,000 \
\text { Noncontrollable fixed }&105,000
\end{array}$ Instructions
(a) Prepare a responsibility report for the Real Estate Products Division for 2016.
(b) Assume the division is an investment center and average operating assets were $1200000. Compute ROI.

Question

The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2016 at $1250000. The only variable costs budgeted for the division were cost of goods sold ($610000) and selling and administrative ($80000). Fixed costs were budgeted at $130000 for cost of goods sold $120000 for selling and administrative and $95000 for noncontrollable fixed costs. Actual results for these items were: $\begin{array}{lr}
\text { Sales } & \$ 1,175,000 \
\text { Cost of goods sold } &  \
\quad \text { Variable } & 545,000 \
\text { Fixed } & 140,000\
\text { Selling and administrative } &  \
\text { Variable } & 82,000\
\text { Fixed } &100,000  \
\text { Noncontrollable fixed }&105,000
\end{array}$  Instructions
(a) Prepare a responsibility report for the Real Estate Products Division for 2016.
(b) Assume the division is an investment center and average operating assets were $1200000. Compute ROI.

Quizplus · Accepted Answer

The Answer of The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2016 at $1250000. The only variable costs budgeted for the division were cost of goods sold ($610000) and selling and administrative ($80000). Fixed costs were budgeted at $130000 for cost of goods sold $120000 for selling and administrative and $95000 for noncontrollable fixed costs. Actual results for these items were: $\begin{array}{lr}
\text { Sales } & \$ 1,175,000 \
\text { Cost of goods sold } &  \
\quad \text { Variable } & 545,000 \
\text { Fixed } & 140,000\
\text { Selling and administrative } &  \
\text { Variable } & 82,000\
\text { Fixed } &100,000  \
\text { Noncontrollable fixed }&105,000
\end{array}$  Instructions
(a) Prepare a responsibility report for the Real Estate Products Division for 2016.
(b) Assume the division is an investment center and average operating assets were $1200000. Compute ROI.

The Real Estate Products Division of McKenzie Co Instructions (A) Prepare a Responsibility Report for the Real Estate

The Real Estate Products Division of McKenzie Co Instructions
(A) Prepare a Responsibility Report for the Real Estate