Compute the expected ROI in 2027 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, eg. 1.57%) (1) Variable selling and administrative expenses are decreased by 5%. (2) Average operating assets are decreased by 20.0%. (3) Sales are increased by $199,000, and this increase is expected to increase contribution margin by $84,000. The expected ROI % % %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Compute the expected ROI in 2027 for the Home Division, assuming the following independent changes to actual data. (Round
ROI to 2 decimal places, eg. 1.57%)
(1)
Variable selling and administrative expenses are decreased by 5%.
(2)
Average operating assets are decreased by 20.0%.
(3)
Sales are increased by $199,000, and this increase is expected to increase
contribution margin by $84,000.
The expected ROI
%
%
%
Transcribed Image Text:Compute the expected ROI in 2027 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, eg. 1.57%) (1) Variable selling and administrative expenses are decreased by 5%. (2) Average operating assets are decreased by 20.0%. (3) Sales are increased by $199,000, and this increase is expected to increase contribution margin by $84,000. The expected ROI % % %
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