Question

EYPLUS Support Question 4 --/1.5 View Policies Current Attempt In Progress For the year ending December 31, 2020, Cobb Company accumulates the following data for the Plastics Division which it operates as an investment center contribution margin-5671,110 budget, 5695,741 actual controllable foxed costs --$298,900 budget, $305.900 actual. Average operating assets for the year were $1.959,000. Prepare a responsibility report for the Plastics Division beginning with contribution margin for the year ending December 31, 2020. (Round Rol to 1 decimal place, eg. 1.5%) COBB COMPANY Plastics Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget e Textbook and Media MacBook Air

Answer 1

Answer: COBB COMPANY Plastics Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable Nor Budget Actual Unfavorable Contribution Margin 671110 695 741 24631 Favorable Controllable Fixed Costs 298900 305900 7000 Unfavorable Controllable Margin 372210 389841 17631 Favorable Return on Investment 19% 19.90% 0.90% Favorable Calculation: ROI Budgeted = Controllable Margin / Average Operating Assets * 100 ROI Budgeted = $372210 / $1959000 *100 ROI Budgeetd = 19% ROI Actual = Controllable Margin / Average Operating Assets * 100 ROI Actual = $389841 / $1959000 * 100 ROI Actual = 19.9%