The sports equipment division


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.

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Accounting Basics: The sports equipment division
Reference No:- TGS0680928

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