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(a) Compute the return on investment for the current year. (Round answers to 1 decimal place, e.g. 52.7%) Return on investment %

(a) Compute the return on investment for the current year. (Round answers to 1 decimal place, e.g. 52.7%) Return on investment %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Pacific Division of Crane Industries reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1 Top management is unhappy with the investment center's return on investment. It asks the manager of the Pacific Division to submit plans to improve ROI in the xt year. The manager believes it is feasible to consider the following independent courses of action. 2. 3. (a) $4,015,342 2,602,000 802,000 5,011,000 Increase sales by $402.000 with no change in the contribution margin percentage. Reduce variable costs by $120,264. Reduce average operating assets by 4% Return on investment Compute the return on investment for the current year. (Round answers to 1 decimal place, e.g. 52.7%.) Save for Later eTextbook and Media % Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:The Pacific Division of Crane Industries reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1 Top management is unhappy with the investment center's return on investment. It asks the manager of the Pacific Division to submit plans to improve ROI in the xt year. The manager believes it is feasible to consider the following independent courses of action. 2. 3. (a) $4,015,342 2,602,000 802,000 5,011,000 Increase sales by $402.000 with no change in the contribution margin percentage. Reduce variable costs by $120,264. Reduce average operating assets by 4% Return on investment Compute the return on investment for the current year. (Round answers to 1 decimal place, e.g. 52.7%.) Save for Later eTextbook and Media % Attempts: 0 of 3 used Submit Answer
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